The Trump administration said Friday that it had taken a 10% stake in Intel, President Donald Trump’s latest extraordinary move to exert federal government control over private business.
The United States will not seek direct representation on Intel’s board and pledged to vote with the current Board of Directors on matters requiring shareholder approval, “with limited exceptions,” according to a joint release from the Trump administration and Intel. The move also comes as the United States vies with China in the race to dominate the artificial intelligence industry.
Trump also announced the deal on his Truth Social platform Friday, praising the company’s CEO just two weeks after he called on the executive to resign over alleged China ties.
“It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future,” he wrote. “I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation.”
While the U.S. held temporary stakes in firms at the center of the 2008-2009 global financial meltdown as part of a bailout, this move is unusual since the economy is not embroiled in a crisis. Congress published a study in 2003 that examined the impact of the federal government taking direct stakes in public companies, concluding that doing so would “not offer a free lunch” and expose taxpayers to “greater risk” alongside the upside potential.
In a joint release, the Trump administration and Intel said the stake would be paid for through $5.7 billion in grants previously awarded to Intel under the 2022 U.S. CHIPS and Science Act, plus $3.2 billion awarded to the company as part of a program called Secure Enclave. It’s a formerly classified initiative that Congress appropriated funds for in 2024 after lobbying by Intel, Politico reported in 2024.
Including $2.2 billion in CHIPs grants Intel has received so far, the total investment is $11.1 billion, or 9.9%. Intel is valued at about $108 billion on the stock market.
Trump continues to bulldoze through such long-held norms regarding government and business, an explicit departure from the free-market ethos that has long prevailed in both major U.S. political parties.
This month, Trump persuaded the chipmakers Nvidia and AMD to pay the U.S. government 15% of their revenues from some sales to China in return for securing export licenses there.
While those firms have seen their fortunes rise amid the larger artificial intelligence boom, a windfall from any of them is no sure thing. In the case of the California-based Intel, the company has struggled to keep up with rivals, with its shares down some 60% from the highs seen during the pandemic. Trump recently backed off his attacks on Intel’s CEO after they met at the White House.
Earlier this week, Japan’s SoftBank announced it would invest $2 billion in Intel to “deepen their commitment to investing in advanced technology and semiconductor innovation in the United States.”
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