The US government is making an $8.9 billion investment in Intel, securing a 10% stake in the embattled chipmaker. President Donald Trump confirmed the deal, which he said was negotiated directly with Intel CEO Lip-Bu Tan.
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While framed as a new investment, most of the funds were already slated to go to Intel. The deal is being funded by the remaining $5.7 billion in grants from the CHIPS Act, along with $3.2 billion from the Secure Enclave program. Intel has already received $2.2 billion from the CHIPS Act.
This move is the latest in a series of actions that blend government and corporate interests. President Trump, who had recently called for Tan’s resignation over his ties to China, stated that he positioned the deal as a way for the CEO to “keep his job.” According to Intel, the government’s 10% stake will be a “passive ownership,” with no board representation or governance rights.
The news comes just days after SoftBank announced a separate $2 billion investment to expand Intel’s chipmaking in the U.S. This deal also follows recent reports that the Trump administration has demanded that Nvidia and AMD give the government a 15% cut of their advanced chip sales to China.
Treasury Secretary Scott Bessent had hinted at the deal earlier, calling it a “conversion of grants” meant to “stabilize the company for chip production here in the US.” President Trump indicated that he plans to pursue similar deals in the future.
