Trump says Intel has agreed to a deal for U.S. to take 10% fairness stake

U.S. President Donald Trump stated on Friday (August 22, 2025) that the U.S. would take a ten% stake in Intel below a take care of the struggling chipmaker and is planning extra such strikes, the newest extraordinary intervention by the White House in company America.

The U.S. agreed to buy a 9.9% stake in Intel for $8.9 billion at a value of $20.47 a share, which is a reduction of about $4 per share from Intel’s closing share value of $24.80 on Friday.

The authorities will buy the 433.3 million shares with funding from the $5.7 billion in unpaid CHIPS Act grants and $3.2 billion awarded to Intel for the Secure Enclave program.

Intel shares dropped 1.2% in prolonged buying and selling on Friday.

The improvement follows a gathering between CEO Lip-Bu Tan and Mr. Trump earlier this month that was sparked by Mr. Trump’s demand for the Intel chief’s resignation over his ties to Chinese corporations.

“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,” Mr. Trump stated on Friday.

Commerce Secretary Howard Lutnick stated on X that the deal had been accomplished. “The United States of America now owns 10% of Intel,” he wrote, saying Mr. Tan had struck a deal “that’s fair to Intel and fair to the American People.”

Yet one other U.S. Govt. take care of an organization

While Mr. Trump didn’t present particulars on the $10 billion, the fairness stake is about equal to the quantity Intel is ready to obtain in CHIPS Act grants from the federal government to assist fund the constructing of chip vegetation within the U.S. The Intel funding can be the newest of a number of uncommon offers with U.S. corporations, together with the U.S. authorities agreeing to permit AI chip big Nvidia to promote its H20 chips to China in change for receiving 15% of these gross sales.

The Pentagon can also be slated to change into the biggest shareholder in a small mining firm to spice up output of uncommon earth magnets and the U.S. authorities negotiated for itself a “golden share” with sure veto rights as a part of a deal to permit Nippon Steel to purchase U.S. Steel.

The U.S. authorities’s broad intervention in company issues has fearful critics who say Mr. Trump’s actions create new classes of company threat.

Officials beforehand advised Reuters the Trump administration wished to transform $7.9 billion in money grants authorized by the administration of President Joe Biden for Intel to construct chip vegetation within the United States to an fairness stake within the firm.

On Thursday, a White House official stated the administration was not in search of fairness stakes from corporations like TSMC or Micron which have boosted their U.S. funding plans.

Intel’s issues

SoftBank agreed to take a $2 billion stake in Intel on Monday.

Daniel Morgan, senior portfolio supervisor at Synovus Trust, stated Intel’s issues are past a money infusion from SoftBank or fairness curiosity from the federal government.

“Without government support or another financially stronger partner, it will be difficult for Intel foundry unit to raise enough capital to continue to build out more Fabs at a reasonable rate,” he stated, including that Intel “needs to catch up with TSMC from a technological perspective to attract business.”

Mr. Lutnick stated this week that any stake can be non-voting, which means it might not give the U.S. authorities the flexibility to dictate how the corporate runs its enterprise.

Intel declined to touch upon Friday.

Breathing room

Federal backing might give Intel extra respiration room to revive its loss-making foundry enterprise, analysts stated, but it surely nonetheless suffers from a weak product street map and challenges in attracting prospects to its new factories.

Mr. Trump, who met with Mr. Tan on August 11, has taken an unprecedented method to nationwide safety. The U.S. president has pushed for multibillion-dollar authorities tie-ups in semiconductors and uncommon earths, corresponding to a pay-for-play take care of Nvidia and an association with rare-earth producer MP Materials, to safe essential minerals.

Mr. Tan, who took the highest job at Intel in March, has been tasked to show across the American chipmaking icon, which recorded an annual lack of $18.8 billion in 2024 – its first such loss since 1986. The firm’s final fiscal 12 months of constructive adjusted free money circulation was 2021.