U.S. Government to Acquire 10% Stake in Intel Under CHIPS Act Funding Terms

The TRUMP administration is finalizing a deal to take a 10% equity stake in Intel Corporation, valued at approximately $10 billion based on the chipmaker's $100 billion market capitalization. President Trump confirmed the arrangement, emphasizing it represents ownership rather than a bailout. "They've agreed to do it and I think it's a great deal for them," he stated during remarks.

Commerce Secretary Howard Lutnick clarified the equity WOULD be nonvoting, preserving Intel's operational independence while granting the federal government a substantial financial interest. The funding derives from existing CHIPS Act allocations approved during the Biden administration, repurposed with equity requirements rather than unconditional grants.

Intel CEO Lip-Bu Tan has yet to formally execute the agreement, with negotiations ongoing ahead of an anticipated meeting with Trump. The MOVE signals a strategic shift in semiconductor policy, tying federal subsidies to direct capital participation in domestic tech leaders.