Intel Gives US 10% Stake in the Company

The US government is about to become one of Intel's largest shareholders. President Trump said Friday the federal government will acquire a nearly 10% stake in the struggling chipmaker following two weeks of intense negotiations, reports the Wall Street Journal. Speaking to reporters, Trump recounted his talks with CEO Lip-Bu Tan. "I said, 'You know what? I think the United States should be given 10% of Intel,'" Trump said. "That's about $10 billion." Tan agreed.

Trump said he floated the idea of a government stake after citing the substantial aid—roughly $8 billion in grants—that Intel has received under the 2022 Chips Act. Earlier this week, while discussing a possible deal, Commerce Secretary Howard Lutnick said the government role would be limited: It will not have a seat on the company's board, nor will federal officials have a say in company decision-making.

Still, the Post describes the development as "an extraordinary intervention of the federal government into a private tech company." The reason for it? As the Journal notes, Intel is losing roughly $1 billion a month of late "and needs customers or deals for its chip design and manufacturing businesses to get back on track." Its shares were up 7% on the day.