The United States government purchased a 10% share in Intel under an $8.9 billion deal, President Donald Trump announced.
The deal follows a meeting earlier this month when Trump had demanded Intel CEO Lip-Bu Tan’s resignation over ties to Chinese firms. “He walked in wanting to keep his job, and he ended up giving us $10b for the United States,” Trump said.
US Commerce Secretary Howard Lutnick confirmed the deal on X, writing: “The United States of America now owns 10% of Intel,” and described it as fair to both Intel and the American people, report agencies.
The stake is roughly equal to the amount Intel was to receive from CHIPS Act grants for US semiconductor plants. The move comes after a $2 billion investment from SoftBank Group.
Analysts said federal backing may help Intel stabilise its foundry business, but the company still faces challenges with its product pipeline and attracting customers.
Tan became Intel’s CEO in March. The company posted an $18.8 billion loss in 2024, its first since 1986. Its last positive adjusted free cash flow was in 2021.
US Senator Bernie Sanders supported the plan earlier this week. He and Senator Elizabeth Warren had previously said companies receiving government grants should provide warrants, equity, or senior debt instruments to the US Treasury.