US President Donald Trump announced on Friday that the US government has taken a 10% stake in Intel. The deal gives Washington 433.3 million shares of non-voting stock worth $11.1 billion, at a discounted price of $20.47 each. With Intel’s shares closing at $24.80 on Friday, the government already shows a paper gain of $1.9 billion.
This move makes the US one of Intel’s largest shareholders at a time when the chipmaker is struggling.
Intel is cutting more than 20,000 jobs after years of leadership changes and losses exceeding $22 billion since 2023.
Trump, who just weeks ago called Intel’s CEO Lip-Bu Tan unfit for the job, praised him on Friday as a “highly respected” leader. Tan, who took charge in March, had faced questions over past business ties to China. But after pledging loyalty to the US and meeting Trump at the White House, he secured the president’s support.
The investment comes from funds linked to the CHIPS and Science Act, a program originally launched under President Joe Biden to boost US chip production.
Trump’s administration, while criticizing Biden’s policy, is now using those funds to claim ownership in Intel. Commerce Secretary Howard Lutnick said it was “the right move” to ensure taxpayers benefit.
Critics, however, warn the deal could blur the line between government and private business. Some fear companies may feel pressured to buy Intel chips to stay in Trump’s good books. Others worry about political meddling in Intel’s future.
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Shivam Verma is a journalist with over three years of experience in digital newsrooms. He currently works at NewsX, having previously worked for Firstpost and DNA India. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football—both playing and watching—and enjoys travelling to explore new places and cuisines.
