US President Donald Trump announced on August 22 that the US government has taken a direct stake in Intel worth around $11 billion, representing a roughly 10 percent stake in the chip-manufacturing giant. The deal makes the US the largest shareholder in one of its biggest semiconductor companies.
The agreement with Intel is the latest instance of Trump cutting deals with private companies in exchange for government action or regulatory relief. Experts say it’s unprecedented and potentially troubling. Here’s what you need to know:
Intel, a US tech industry pioneer, has fallen behind global leaders like Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, and Nvidia in recent years. The company’s stock has lost over half its value in the last five years.
Trump signed a deal with Intel, allowing the US government to take a 10% stake in exchange for releasing previously promised funding. The US Commerce Secretary stated that the same money given to Intel should be shared with the American people.
The deal comes amid Trump’s efforts to revitalize US semiconductor manufacturing and compete with China. He has also cut deals with Nvidia and AMD to sell semiconductors to China, receiving 15% of all Chinese sales.
However, experts question whether the deal will actually fix Intel’s problems. The US government is not injecting additional cash into the company beyond what was promised by the Biden administration. Some worry that the deal could limit Intel’s ability to secure future grants or pose regulatory issues for its dealings with other governments.
Trump defended the deal, saying he wants to try and get as much as possible from his agreements. However, it remains unclear whether this move is legal, as Congress controls government purse strings and needs approval for any spending.
The CHIPS Act, under which Intel received grants, has already been approved by Congress. However, the law does not expressly allow for equity stakes in companies. Trump stated that Congress will likely go along with his plans.
Source: https://foreignpolicy.com/2025/08/27/trump-intel-deal-ceo-tan-china-chips-act