US Govt Takes 10% Stake in Intel After CEO Dispute

President Trump announced that the U.S. government will take a 10 percent stake in Intel, valued at approximately $10 billion, as part of a deal linked to federal subsidies provided under the CHIPS and Science Act. This move follows Trump’s earlier call for Intel CEO Lip-Bu Tan’s resignation due to alleged conflicted ties with China, but after a meeting, Tan agreed to the equity stake, which Trump framed as a way for Tan to keep his job. Commerce Secretary Howard Lutnick confirmed the deal as historic, strengthening U.S. leadership in semiconductors and securing technological advantages. Trump indicated plans to pursue similar deals with other companies receiving government funding, highlighting the administration's active intervention in securing U.S. interests in critical technology sectors. Intel's stock rose more than 5 percent following the announcement, while the company declined to comment on the arrangement. Observers note that federal backing could provide Intel with much-needed support as it attempts to revive its foundry business amid ongoing business challenges.