President Donald Trump announced on Friday that the United States government will acquire a 10% equity stake in Intel Corporation, a move valued at approximately $10 billion. This decision follows a meeting between Trump and Intel CEO Lip-Bu Tan, during which the president had previously called for Tan’s resignation over alleged ties to Chinese firms. Trump remarked that Tan “walked in wanting to keep his job and he ended up giving us $10 billion for the United States.” ([apnews.com](https://apnews.com/article/b538526b6698f7ebd31e99effd727693?utm_source=openai))
The investment is part of a broader strategy by the Trump administration to bolster domestic semiconductor manufacturing and reduce reliance on foreign-made chips. The U.S. government’s stake in Intel is intended to be non-voting, thereby minimizing direct influence over the company’s operations. Commerce Secretary Howard Lutnick emphasized that the government “won’t have a board seat or other governance rights.” ([cnbc.com](https://www.cnbc.com/2025/08/22/intel-goverment-equity-stake.html?utm_source=openai))
Intel has faced significant financial challenges in recent years, including an $18.8 billion loss in 2024. The company’s foundry division has struggled to secure major external customers, and it has fallen behind competitors like Taiwan Semiconductor Manufacturing Company (TSMC) in chip manufacturing capabilities. The federal investment aims to provide Intel with the necessary resources to revitalize its operations and enhance its competitiveness in the global semiconductor market. ([ft.com](https://www.ft.com/content/aec7bdce-d9ca-4416-a1b4-a0da5d11c715?utm_source=openai))
This move is part of a series of interventions by the Trump administration in the private sector, including securing a 15% cut of Nvidia’s chip sales to China and acquiring “golden shares” with veto rights in select industries. While the equity stake in Intel is described as non-voting, critics have expressed concerns about the broader implications of government involvement in private businesses. ([reuters.com](https://www.reuters.com/business/trump-says-intel-has-agreed-deal-us-take-10-equity-stake-2025-08-22/?utm_source=openai))
The deal also follows a $2 billion investment in Intel by Japan’s SoftBank Group, which acquired a 2% stake in the company. This investment was seen as a significant vote of confidence in Intel’s potential for a turnaround. ([euronews.com](https://www.euronews.com/business/2025/08/20/us-government-pushes-for-10-intel-stake-amid-us-china-chip-war?utm_source=openai))
Intel’s stock responded positively to the news, rising about 6% during trading on Friday. The company’s shares have been under pressure due to its financial struggles and competitive challenges, making the government’s investment a potential catalyst for recovery. ([cnbc.com](https://www.cnbc.com/2025/08/22/intel-goverment-equity-stake.html?utm_source=openai))
The U.S. government’s acquisition of a stake in Intel marks a significant shift in industrial policy, reflecting a more interventionist approach to supporting key domestic industries. As the semiconductor sector continues to be a focal point of global economic and national security strategies, this move underscores the administration’s commitment to ensuring the United States remains a leader in technological innovation.