U.S. Government Acquires 10% Stake in Intel, Trump Announces

President Donald Trump announced that Intel has agreed to give the U.S. government a 10% equity stake in the company, a deal valued at approximately $10 billion. This agreement followed a meeting between Trump and Intel CEO Lip-Bu Tan, whom Trump had previously urged to resign over alleged ties to the Chinese Communist Party. The stake is part of an effort to convert grants from the 2022 CHIPS and Science Act into equity, aiming to secure a return on government investments in the chipmaker. Commerce Secretary Howard Lutnick has supported this approach, emphasizing the goal of benefiting American taxpayers rather than merely providing grants. The Trump administration plans to seek stakes primarily in companies that do not increase their domestic investments, excluding firms like TSMC that are expanding U.S. operations. Intel, which has faced recent financial struggles and increased competition from companies like Nvidia, saw its shares rise following the announcement.