US Government Acquires 10% Intel Stake via Grant Conversion

President Donald Trump has led the U.S. government's acquisition of a nearly 10% stake in Intel by converting approximately $8.9 billion in unpaid federal grants, awarded under the CHIPS and Science Act and the Secure Enclave program, into equity shares. This strategic move, confirmed after a meeting between Trump and Intel CEO Lip-Bu Tan, aims to boost domestic production capacity in critical industries and strengthen U.S. technological and industrial dominance, particularly in semiconductor manufacturing. Trump has expressed his intention to replicate this equity model across other American industries, signaling a shift towards a more state-engaged economy, which has drawn criticism from business leaders and politicians like Senator Rand Paul who warn it undermines free-market principles. Despite initial calls for Tan's resignation over past investments in Chinese firms, Intel's CEO welcomed the government as a shareholder, viewing it as a positive partnership. The deal marks a departure from traditional U.S. economic policy, with the government now directly involved in corporate equity, a move Trump defends as sound business strategy rather than socialism. Intel, facing sliding sales and recent job cuts, sees the government's involvement as a way to secure future funding and maintain its leadership in advanced chip technology.