US Government Plans Nearly 10% Stake in Intel

President Donald Trump announced that the U.S. government will acquire a nearly 10% equity stake in Intel as part of efforts to support the struggling chipmaker, marking an unprecedented level of government intervention in a major American corporation. This stake is linked to converting grants from the CHIPS and Science Act into equity, with the government’s share being nonvoting and without direct board involvement. The move follows recent tensions involving Intel CEO Lip-Bu Tan, who resigned after a White House meeting amid concerns about his ties to Chinese firms, and comes as Intel seeks to boost its foundry business and remains challenged by competition from Taiwan Semiconductor Manufacturing Company. The announcement aligns with Trump’s broader strategy to secure government partnerships in critical technology sectors, also including negotiations with Nvidia and rare-earth producers. Intel shares reacted positively to the news, rising over 5%, and the company recently secured a $2 billion investment from SoftBank. Commerce Secretary Howard Lutnick emphasized the government's intent to receive equity in exchange for previously committed CHIPS Act funding, signaling a shift toward more active U.S. industrial policy.