White House, Intel Strike Landmark Deal Giving US Government 10% Stake
The White House on Friday announced a landmark agreement under which the federal government will take a 10% ownership stake in US semiconductor giant Intel, in a move officials say is designed to safeguard America’s technological leadership.
Commerce Secretary Howard Lutnick described the arrangement as “historic,” adding in a post on X that it would “strengthen US leadership in semiconductors, grow our economy, and help secure America’s technological edge.” He shared the remarks alongside a photo with Intel chief executive Lip-Bu Tan.
President Donald Trump had earlier unveiled the deal during an Oval Office appearance, calling it “a great deal for them.” News of the government’s stake sent Intel shares surging more than 5% in Friday trading.
Intel said in a statement that Washington would inject $8.9 billion into the company by purchasing common stock. The investment is being drawn from previously approved but unpaid grants, including funding under the Biden-era CHIPS and Science Act, which was passed to encourage more chip production on US soil.
“As the only semiconductor company conducting leading-edge logic research, development, and manufacturing in the United States, Intel is deeply committed to ensuring that the world’s most advanced technologies are made in America,” Tan said. He credited Trump’s emphasis on domestic chip production for spurring unprecedented investment in a sector seen as vital to both economic growth and national security.
The deal comes as Intel struggles to regain ground against rivals, particularly Nvidia, whose market valuation has skyrocketed past $4 trillion while Intel’s has stagnated at around $100 billion. Analysts say Intel missed major opportunities in mobile computing and artificial intelligence, sectors that have propelled competitors to dominance.
The agreement also follows weeks of tension between Trump and Tan. Earlier this month, the president urged Tan to resign, citing concerns over alleged ties to Chinese firms. Tan denied the claims, describing them as “misinformation” and affirming his compliance with all US laws. He later visited the White House to meet Trump directly.
White House Press Secretary Karoline Leavitt described the government’s decision to take equity in Intel as “a creative idea that’s never been done before.” Experts noted, however, that the approach echoes other interventions in US industry, including the federal rescue of General Motors during the 2008 financial crisis and a more recent stake in rare earth miner MP Materials.
Jacob Feldgoise, senior analyst at Georgetown University’s Center for Security and Emerging Technology, said the move highlights Washington’s determination to play a more direct role in private markets. “It’s about advancing US economic and national security objectives—particularly regaining leadership in semiconductor manufacturing,” he told the BBC.
The Intel stake marks one of the most aggressive steps yet in the administration’s push to shore up America’s chipmaking capacity at a time when global supply chains remain fragile and competition with China intensifies.
