Intel Corporation has announced a landmark agreement with the Trump Administration that will see the U.S. government make an $8.9 billion investment in Intel common stock. The decision reflects Washington’s intent to strengthen domestic semiconductor manufacturing and reinforce the country’s technology leadership. The government’s equity stake will be funded by $5.7 billion in previously awarded but unpaid grants under the U.S. CHIPS and Science Act, along with $3.2 billion from the Secure Enclave program. Combined with the $2.2 billion already distributed to Intel, the total federal support rises to $11.1 billion. As part of the deal, Intel will continue to deliver on its Secure Enclave program obligations and reaffirmed its commitment to trusted and secure semiconductor production for the U.S. Department of Defense.
The investment will see the government purchase 433.3 million shares of Intel stock at $20.47 per share, giving it a 9.9 percent stake. The agreement specifies that this will remain a passive ownership without board representation or governance rights, though the government has agreed to align its shareholder votes with Intel’s Board of Directors on most matters. To protect national manufacturing interests, the government will also receive a five-year warrant to acquire an additional five percent of Intel shares at $20 each, exercisable only if Intel loses majority ownership of its foundry operations. At the same time, existing claw-back and profit-sharing conditions tied to earlier CHIPS Act grants have been eliminated, ensuring Intel has permanency of capital for its long-term investment plans.
Intel’s leadership emphasized the strategic importance of this agreement in maintaining U.S. competitiveness. CEO Lip-Bu Tan highlighted Intel’s unique position as the only company conducting both leading-edge logic research and manufacturing in the U.S., underscoring its critical role in sustaining American technological and economic security. Commerce Secretary Howard Lutnick noted that this partnership would strengthen U.S. dominance in artificial intelligence and national security, adding that welcoming the U.S. government as a shareholder is a milestone for both Intel and the broader technology ecosystem. Industry leaders from Microsoft, Dell, HP, and Amazon Web Services also expressed support, pointing to Intel’s role in creating a resilient semiconductor supply chain that underpins AI, cloud platforms, and next-generation consumer technologies.
The agreement builds on Intel’s substantial U.S. investments in research and manufacturing. Since 2019, the company has spent $108 billion on capital projects and $79 billion on R&D, largely focused on domestic capacity. Intel is also in the midst of a more than $100 billion expansion of its U.S. sites, with its newest Arizona fabrication plant expected to begin high-volume production later this year using the country’s most advanced semiconductor process technology. Since assuming the role of CEO in March, Tan has worked to reinforce Intel’s financial stability, sharpen execution, and revive its engineering-first culture, aligning the company’s long-term strategy with U.S. industrial policy.
With Washington’s equity stake, Intel secures significant capital to accelerate its domestic expansion while the U.S. gains a direct investment in a company at the center of the global semiconductor race. The collaboration marks a major step toward securing the country’s semiconductor supply chain, advancing AI leadership, and strengthening partnerships across the American technology landscape.
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