Trump says Intel has agreed to deal for US to take 10% equity stake
President Donald Trump said on Friday the US would take a 10% stake in Intel under a deal with the struggling chipmaker and is planning more such moves.
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President Donald Trump said on Friday the US would take a 10% stake in Intel under a deal with the struggling chipmaker and is planning more such moves, the latest extraordinary intervention by the White House in corporate America.
An official announcement on the arrangement is expected later in the day, a source familiar with the matter said. Trump is set to meet with CEO Lip-Bu Tan later on Friday, a White House official confirmed.
The development follows a meeting between Tan and Trump earlier this month that was sparked by Trump's demand for the Intel chief's resignation over his ties to Chinese firms.
"He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion," Trump said on Friday.
While Trump did not provide details on the $10 billion, the equity stake is about equal to the amount Intel is set to receive in CHIPS Act grants from the government to help fund the building of chip plants in the US
The Intel investment would be the latest of several unusual deals with US companies, including agreeing to allow AI chip giant Nvidia to sell its H20 chips to China in exchange for the US government receiving 15% of those sales.
The Pentagon is also slated to become the largest shareholder in a small mining company to boost output of rare earth magnets, and the US government negotiated for itself a "golden share" with certain veto rights as part of a deal to allow Nippon Steel to buy US Steel.
The US government's broad intervention in corporate matters has worried critics who say Trump's actions create new categories of corporate risk.
Officials previously told Reuters the Trump administration wanted to convert $7.9 billion in cash grants approved by the administration of President Joe Biden for Intel to build chip plants in the United States to an equity stake in the company.
A 10% stake at current share prices would be worth roughly $10 billion. Commerce Secretary Howard Lutnick said this week any stake would be non-voting, meaning it would not enable the US government to tell the company how to run its business.
Intel, whose shares rose more than 6%, declined to comment.
The move follows a $2 billion capital injection from SoftBank Group in what was a major vote of confidence for the troubled US chipmaker in the middle of a turnaround.
Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product roadmap and challenges in attracting customers to its new factories.
Trump, who met with Tan on August 11, has taken an unprecedented approach to national security.
The US president has pushed for multibillion-dollar government tie-ups in semiconductors and rare earths, such as a pay-for-play deal with Nvidia and an arrangement with rare-earth producer MP Materials, to secure critical minerals.
Tan, who took the top job at Intel in March, has been tasked to turn around the American chipmaking icon, which recorded an annual loss of $18.8 billion in 2024 - its first such loss since 1986. The company's last fiscal year of positive adjusted free cash flow was 2021.