The US government has acquired a 10% equity stake in Intel following negotiations between President Donald Trump and Intel CEO Lip-Bu Tan. The deal marks an unprecedented move, giving Washington direct ownership in one of America’s largest technology companies.
The stake, valued at around $10 billion, is roughly equal to the federal funding Intel is set to receive under the Chips and Science Act for new semiconductor factories in the United States. Trump said the agreement came after tough discussions with Tan, who had earlier faced pressure from the White House over his business ties to Chinese firms.
The government’s investment is designed to stabilize Intel during a difficult period. The chipmaker reported a $18.8 billion annual loss in 2024, its first in decades, and has struggled to keep pace with rivals like TSMC. Analysts suggest federal backing may help Intel’s foundry business gain breathing room, but warn that the company still needs stronger technology development and customer confidence to regain leadership in the semiconductor market.
The arrangement is part of a broader White House strategy to secure supply chains and ensure American leadership in advanced chipmaking. Officials have also struck similar deals with other major technology and resource companies, signaling an era of deeper government involvement in critical industries.
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