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President Donald Trump announced Friday that the U.S. government has acquired a 10% stake in Intel, making the nation one of the chipmaker’s largest shareholders as the company undergoes sweeping layoffs and tries to regain its footing in the global semiconductor race.
The deal, finalized through the conversion of $11.1 billion in prior funding pledges, gives the government 433.3 million shares of Intel at $20.47 each — below Friday’s closing price of $24.80. On paper, taxpayers are already sitting on a $1.9 billion gain.
“The United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future,” Trump wrote in a social media post.
The investment represents a remarkable reversal for Trump, who just last week called for Intel CEO Lip-Bu Tan’s resignation over concerns about his past ties to Chinese firms. After a White House meeting and a public letter in which Tan pledged his allegiance to U.S. interests, Trump praised him Friday as a “highly respected” leader.
Tan, in a statement, thanked Trump for “driving historic investments in a vital industry” and vowed to restore Intel’s leadership in American manufacturing and technology.
Intel, valued at roughly $108 billion, has shed more than 20,000 workers in recent months and is trading more than 60% below its late-1990s peak. By comparison, rival Nvidia is now worth $4.3 trillion, cementing its dominance in artificial intelligence chips.
Much of the stake derives from unspent CHIPS and Science Act incentives launched under President Joe Biden to spur U.S. semiconductor production. Trump officials, previously critical of the act, said the conversion ensures “America gets the benefit of the bargain,” in the words of Commerce Secretary Howard Lutnick.
Critics warned the move could politicize the industry. Scott Lincicome of the Cato Institute called it “a horrendous move” that risks distorting markets, while investor Nancy Tengler said the government should “let the private sector lead” rather than risk Trump’s direct involvement in Intel’s business.
The deal evokes comparisons to the 2008 financial crisis, when Washington took a majority stake in General Motors, ultimately selling at a $10 billion loss.
Still, Trump’s team argues the Intel investment is different — a strategic bet to ensure U.S. chip independence amid a high-stakes technology race with China. Alongside the purchase, his administration has imposed a 15% commission on Nvidia and AMD’s China chip sales in exchange for export licenses.
“The future of American technology leadership depends on reducing our reliance on overseas manufacturing,” Trump said. “This is about protecting jobs, security, and our lead in artificial intelligence.”
