US Secures Nearly 10% Nonvoting Stake in Intel to Boost Semiconductor Industry

President Donald Trump has secured a groundbreaking agreement for the U.S. government to acquire a nearly 10% nonvoting stake in Intel Corporation, marking a significant shift toward state-backed industrial policy in the tech sector. The $8.9 billion deal converts previously issued funds from the CHIPS and Science Act and the Secure Enclave program into 433.3 million shares, positioning the government as one of Intel's largest shareholders amid the company's ongoing recovery efforts. Intel CEO Lip-Bu Tan, who faced scrutiny over past China ties, met with Trump and expressed gratitude for the administration's confidence, with Trump praising the deal as vital for America's semiconductor future. The intervention aims to boost domestic chip manufacturing and national security, reflecting bipartisan support, including from Sen. Bernie Sanders, who argues taxpayers deserve returns on federal grants. While Intel's stock reacted positively, analysts caution that financial investment alone won't guarantee success without strong market demand. This deal exemplifies the Trump administration's proactive strategy to strengthen U.S. leadership in critical technologies while navigating the challenges of a competitive global semiconductor industry.