U.S. Government Acquires 10% Stake in Intel

The United States government has acquired a roughly 10% stake in Intel, the country's largest chip manufacturer, through an $8.9 billion investment, combining CHIPS Act grants and government awards aimed at boosting domestic semiconductor production. President Donald Trump announced the deal, highlighting that the government paid nothing upfront for the shares, which are now valued at approximately $11 billion, and emphasized the strategic importance of Intel in maintaining U.S. technological leadership. The government’s stake does not confer voting rights or board representation but includes an option to buy an additional 5% if Intel's foundry business declines below 51%. Intel's CEO Lip-Bu Tan affirmed the company's commitment to manufacturing advanced chips on American soil, and the announcement caused Intel's stock to rise by about 6%. Industry analysts view the investment as a positive sign for Intel’s future funding but note it does not directly address challenges like customer acquisition or the long-term shift of chip production to Asia. The move reflects a broader shift in U.S. industrial policy favoring direct government intervention in critical technology sectors for national security.