The U.S. government has taken a 10% stake in embattled chipmaker Intel as part of a growing trend of the Trump administration exerting control over corporate America. The investment, valued at $8.9 billion, is seen as an effort to promote American-made technology and counter rival countries’ dominance in chip production.
President Donald Trump announced the move on Friday, stating that it’s a “great deal for America” and Intel. The U.S. government’s stake in Intel comes with a warrant to buy an additional 5% of shares if the company loses majority control over its foundry business.
Intel shares rose 6% during trading on Friday, following the announcement. The investment is largely funded by grants awarded under the CHIPS Act, which had previously been earmarked for other purposes.
The deal marks a significant shift in U.S. industrial policy, with the government taking an active role in promoting domestic technology production. SoftBank has also invested $2 billion in Intel, giving it a further boost. However, rival Taiwan Semiconductor Manufacturing Company’s technology is seen as more advanced and competitive.
Intel plans to use the investment to build a new chip factory complex in Ohio, which is now expected to start operations in 2030. The company had previously slowed down construction due to market uncertainty, but is now set to accelerate its plans with government support.
Source: https://www.cnbc.com/2025/08/22/intel-goverment-equity-stake.html