US to take 10% equity stake in Intel, in Trump’s latest corporate move

In the most recent remarkable move by the White House in America, President Donald Trump said on Friday that the United States would acquire a 10% stake in Intel and opens a new tab under an agreement with the faltering chipmaker that turns government grants into equity shares.

Following Trump’s previous statement that Intel CEO Lip-Bu Tan should resign due to conflicts of interest, the agreement improves relations between the two men. It will guarantee that roughly $10 billion will be given to the chipmaker to establish or expand factories in the United States. As per the agreement, the United States will pay $8.9 billion, or $20.47 per share, to acquire a 9.9% interest in Intel. This represents a roughly $4 discount from Intel’s closing share price of $24.80.

The $5.7 billion in unpaid funds from the Biden-era CHIPS Act and the $3.2 billion given to Intel for the Secure Enclave program—also given under Trump’s predecessor, Democratic President Joe Biden—will be used to pay for the acquisition of the 433.3 million Intel shares.
After closing up 5.5% during regular trading, Intel’s shares increased by about 1% during Friday’s extended session.
According to a White House official, Trump and Tan met on Friday. That came after Trump met with the CEO of Intel on August 11 and requested that Tan step down due to his connections to Chinese companies.

“He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion,” Trump said on Friday.

Commerce Secretary Howard Lutnick said on X that Tan had struck a deal “that’s fair to Intel and fair to the American People.”

Along with a U.S. government agreement that permits AI chip giant Nvidia NVDA.O to sell its H20 processors to China in exchange for 15% of those sales, the Intel investment is the most recent atypical agreement with U.S. firms.

Other recent agreements include the Pentagon’s agreement to increase its stake in a small mining company, MP Materials, in order to increase production of rare earth magnets, and the U.S. government’s acquisition of a “golden share” with specific veto rights in order to permit Japan’s Nippon Steel (5401.T) to acquire U.S. Steel. Critics have expressed concern about the federal government’s extensive involvement in business affairs, claiming that Trump’s policies have created new types of corporate risk.