US Government Takes $8.9 Billion Stake in Intel, Boosting Semiconductor Sector

The US government has acquired a 9.9% passive stake in Intel through an $8.9 billion investment, purchasing 433.3 million shares at $20.47 each. The deal, finalized late Friday, aligns with President Trump's earlier announcement of a 10% stake in the chipmaker, which he hailed as a "great deal." Intel's stock initially ROSE 5.5% on the news before dipping 1.5% in after-hours trading.

Funding comes from $5.7 billion in unclaimed CHIPS Act grants and $3.2 billion allocated under the Secure Enclave program. Intel retains its commitment to delivering secure semiconductors for the Department of Defense. This investment brings total government support to $11.1 billion, including previous CHIPS Act disbursements.

The MOVE signals intensified government backing for domestic semiconductor production amid global supply chain uncertainties. While no board seats accompany the stake, the Treasury has agreed to vote with Intel's directors, preserving corporate governance structures.