US Government Invests $8.9B in Intel to Boost Domestic Chip Manufacturing

President Donald Trump announced a significant agreement with Intel CEO Lip-Bu Tan, through which the U.S. government acquired a 10% stake in Intel valued at approximately $11 billion, funded largely by CHIPS Act grants and Defense Department programs. This deal aims to boost domestic semiconductor manufacturing, a national security priority to reduce reliance on foreign suppliers and enhance the competitiveness of American chip production against global rivals like TSMC and Samsung. Initially critical of Tan due to his China connections, Trump reversed course and praised him, highlighting the strategic importance of Intel's role in advancing U.S. technology leadership. Intel plans to invest over $100 billion to expand its U.S. manufacturing facilities, marking a historic collaboration between government and industry to secure the nation's supply chains. While experts note potential complications from government ownership, the deal reflects a broader push to strengthen domestic production of critical technologies. Trump also indicated intentions to pursue similar arrangements with other companies to further support American manufacturing and innovation.