President Donald Trump announced Friday that the U.S. government now owns 10% of tech giant Intel, turning $11.1 billion in government funds and commitments into a major stake in the struggling chipmaker. The deal comes just weeks after Trump publicly criticized Intel’s CEO, questioning his loyalty and leadership.
Trump declared the move in a post, saying: “The United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future.”
The government acquired 433.3 million non-voting shares at $20.47 each — below Intel’s closing price of $24.80 — giving it an immediate paper profit of $1.9 billion.
This investment makes the U.S. government one of Intel’s largest shareholders, just as the company is undergoing significant restructuring, including laying off over 20,000 employees, to recover from years of decline and strategic missteps.
Intel’s CEO, Lip-Bu Tan, who took the helm just five months ago, faced pressure earlier this month after lawmakers raised concerns about his previous financial ties to Chinese firms. Trump initially demanded his resignation but reversed course after Tan wrote a letter affirming his loyalty to the U.S. and visited the White House. On Friday, Trump praised Tan as a “highly respected” CEO.
Tan thanked Trump for the investment, calling it a vote of confidence in Intel’s future and a boost to American tech leadership.
Intel’s stock has barely moved since Tan took over in March and remains over 60% below its all-time high of around $75. The company’s current market value is approximately $108 billion — far behind Nvidia, now worth $4.3 trillion.
Investment Tied to CHIPS Act, Despite Prior GOP Criticism
The 10% stake comes largely from funding tied to the CHIPS and Science Act, originally passed under President Joe Biden to boost domestic semiconductor manufacturing. Despite Trump and his administration previously criticizing the CHIPS Act as excessive government spending, they have now used it to secure a financial stake in Intel — aiming to turn it into a profitable venture.
Commerce Secretary Howard Lutnick justified the move by saying: “It’s obvious that it’s the right move to make. America should benefit from this investment.”
Of the $11.1 billion, around $7.8 billion had already been pledged to Intel, but only $2.2 billion had been disbursed so far. Another $3.2 billion came through a different program called “Secure Enclave.”
While the government will not hold voting power or board seats at Intel, critics warn the move could blur the lines between public policy and private enterprise. Some fear it could distort the market — for example, tech firms may feel pressure to favor Intel’s products to stay on good terms with the administration.
Scott Lincicome of the Cato Institute warned that the deal could damage the U.S. tech sector and overall economy, calling it a “horrendous move.”
The new stake may also increase scrutiny on Tan, particularly if Trump begins to focus on Intel’s performance or stock price, as he’s known for highlighting his own business successes.
Nancy Tengler, CEO of Laffer Tengler Investments, expressed skepticism, saying the deal doesn’t appear beneficial to taxpayers or the chip industry. She warned against political interference in corporate affairs and emphasized the private sector should remain independent.
Not Without Precedent
While rare, government stakes in large corporations have happened before — notably during the 2008 financial crisis when the U.S. invested nearly $50 billion in General Motors, acquiring a 60% stake. The government later sold its shares at a loss of about $10 billion.
Strategic Goals: AI, Chips, and China
Trump’s move aligns with his broader effort to bring manufacturing back to the U.S. and reduce reliance on foreign chip production — a key concern amid competition with China over artificial intelligence and advanced tech.
The administration has already imposed a 15% commission on U.S. chipmakers like Nvidia and AMD for sales in China, linking export licenses to compliance with the policy.
Even before the Intel deal, Trump had been actively reshaping the chip sector’s global operations — and with this new stake, the government now has a more direct interest in one of America’s oldest and most iconic tech companies.