The investment into the chipmaker is the latest of several deals struck by the Trump administration with US companies. Photo: Reuters
The United States government has taken an unprecedented 10% stake in Intel, marking a dramatic intervention in corporate America. The deal, confirmed by President Donald Trump and Commerce Secretary Howard Lutnick, is part of a broader push by the White House to strengthen the nation’s technology base.
The announcement was made on Friday following Trump’s meeting with Intel CEO Lip-Bu Tan. Posing for photographs alongside Lutnick, Trump hailed the agreement as a victory for both the company and the country.
“He walked in wanting to keep his job and ended up giving us $10 billion,” Trump said. “So we picked up $10 billion for the United States.”
Lutnick Confirms Move
Lutnick later underscored the significance of the deal in a post on X.
“BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies,” Lutnick wrote. He credited Tan for striking what he described as a “fair deal” for both Intel and the American people.
The $10 billion valuation of the government’s stake roughly matches the amount Intel is set to receive in federal grants under the Chips and Science Act, a law designed to boost semiconductor production on US soil.
Pattern of Unusual Interventions
The Intel move is the latest in a series of extraordinary interventions by the Trump administration into corporate affairs.
Earlier this year, the government secured a 15% cut of Nvidia’s sales of H20 chips to China. Chipmaker AMD entered a similar arrangement. The Pentagon is also preparing to become the largest shareholder in a small mining firm tasked with boosting rare-earth magnet production. In another case, the government negotiated a “golden share” with veto rights to facilitate Nippon Steel’s acquisition of US Steel.
Critics argue that such measures create new risks for corporate America by blurring lines between public and private interests.
Intel’s Struggles
The government stake comes as Intel faces mounting challenges. The company recorded a $18.8 billion loss in 2024, its first annual loss since 1986. Despite a $2 billion investment from SoftBank earlier this year, analysts say Intel’s problems go deeper than financing.
“Without government support or a financially stronger partner, Intel’s foundry unit may struggle to raise enough capital,” said Daniel Morgan, senior portfolio manager at Synovus Trust. He warned that Intel must also catch up technologically with Taiwan Semiconductor Manufacturing Company (TSMC) to remain competitive.
What the Stake Means
At current share prices, the government’s 10% stake is valued at around $10 billion. Lutnick confirmed the holding will be non-voting, ensuring Washington will not directly influence Intel’s corporate decisions.
Analysts suggest federal backing could provide Intel with breathing space to rebuild its foundry business. However, questions remain about its product roadmap and its ability to attract major customers.
Tan, who became CEO in March, faces the formidable task of reviving the American chip giant. With government support now in place, Intel has gained time — but the road to recovery remains uncertain.
