US President Donald Trump announced Friday that the U.S. government has acquired a 10% ownership stake in Intel, converting $11.1 billion in federal funding and program commitments into 433.3 million non-voting shares of the struggling chipmaker. The move marks one of the most aggressive government interventions in a U.S. tech company since the 2008 financial crisis, reports AP/ UNB.
Trump made the announcement via social media, declaring, “The United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future.”
The government paid $20.47 per share — well below Intel’s market price of $24.80 — instantly creating a paper gain of roughly $1.9 billion. While the shares are non-voting and the government will not hold board seats, the federal stake makes Washington one of Intel’s largest shareholders.
The investment follows weeks of political tension between Trump and Intel CEO Lip-Bu Tan, who faced scrutiny earlier this month over his past financial ties to Chinese firms. After Trump publicly called for Tan’s resignation, the CEO wrote a letter pledging his loyalty and visited the White House, after which Trump reversed his position and praised Tan as a “highly respected” executive.
Intel is undergoing massive restructuring to reverse a decade of decline, including more than 20,000 job cuts and a shift in chip manufacturing strategy. Its stock remains over 60% below its $75 peak, and the company trails far behind competitors like Nvidia, which now commands a market value of $4.3 trillion.
The government stake was primarily financed through the CHIPS and Science Act, a landmark bill passed under President Biden to strengthen U.S. semiconductor production. Despite criticizing the bill during Biden’s term, Trump has now leveraged it to secure a long-term financial interest in Intel.
Commerce Secretary Howard Lutnick defended the move, stating, “It’s obvious that it’s the right move to make. America should benefit from this investment.”
Of the $11.1 billion, $7.8 billion had previously been committed to Intel, with only $2.2 billion disbursed before the share acquisition. An additional $3.2 billion came from the Secure Enclave program, focused on funding national security-related tech projects.
Critics argue the move may compromise market integrity. Without voting power or oversight, some fear the government’s presence may still distort competition, giving Intel an unofficial edge or influencing procurement decisions across the tech sector.
Scott Lincicome, a trade policy expert at the Cato Institute, called it “a horrendous move that politicizes the tech industry and risks harming innovation.”
Others, like Nancy Tengler, CEO of Laffer Tengler Investments, questioned whether taxpayers would see any return, “This doesn’t appear to help the chip industry or the public. It invites political interference where there should be none.”
The deal aligns with Trump’s broader strategy of reducing U.S. reliance on foreign chipmakers and confronting China’s dominance in tech. His administration has already imposed a 15% commission on chipmakers selling to China and tied export approvals to compliance with national security policies.
While the U.S. government has previously held stakes in corporations during crises — such as its $50 billion investment in General Motors in 2008 — the Intel deal reflects a more proactive attempt to reshape a key sector from within.
By converting industrial policy into equity ownership, the U.S. government now has a direct financial interest in Intel’s success. Supporters argue this could align national interests with commercial ones. But opponents warn it sets a dangerous precedent where politics and business mix too closely.
As Trump continues to emphasize American tech sovereignty, all eyes will now be on Intel — and whether this historic investment helps revive the company or entangles it further in Washington’s grip.
Bd-pratidin English/ Jisan
