President Donald Trump said Friday the U.S. will take a 10% equity stake in Intel under a deal the White House plans to announce later in the day, and signaled more such moves could be coming.
A 10% slice would be worth roughly $10 billion at current prices and tracks with what Intel is slated to receive in CHIPS Act grants to build U.S. plants, according to officials. Commerce Secretary Howard Lutnick reportedly said the stake would be non-voting, limiting Washington’s ability to direct the company’s operations. (RELATED: How Trump’s China Chips Gambit Could Backfire)
“The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL,” the president wrote on Truth Social. “Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation.”
Trump is set to meet with Intel CEO Lip-Bu Tan later Friday after a tense earlier encounter this month that followed the president’s demand for Tan’s resignation over ties to Chinese firms. The two previously met Aug. 11.
Officials had earlier weighed converting $7.9 billion in already-approved cash grants into equity; at today’s prices a 10% stake pencils out to about $10 billion, according to Reuters.
Intel shares jumped nearly 6% Friday, according to YahooFinance.
The Intel move would be the latest in a string of aggressive government tie-ups with major firms. The administration recently allowed Nvidia to sell H20 chips to China in exchange for the government receiving 15% of those sales, secured a “golden share” with veto rights tied to Nippon Steel’s purchase of U.S. Steel, and positioned the Pentagon to become the largest shareholder in a small rare-earths miner.
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