This move came after President Donald Trump and Commerce Secretary Howard Lutnick met last week with Intel CEO Lip-Bu Tan. President Trump described the deal as a “tremendous opportunity for both America and Intel.”
According to Intel, the government will not have a seat on the company’s board or any other management rights. Intel is the only company in the U.S. that conducts all of its chip manufacturing domestically.
Under the agreement, the government purchased 433.3 million shares at $20.47 per share. Thanks to this arrangement, the government acquired the shares at a lower price than the market value, which would have been about $11 billion.
Of the $8.9 billion spent on this purchase, $5.7 billion comes from government grants under the CHIPS Act, which supports domestic chip production, while the remaining $3.2 billion comes from other government programs. Previously, Intel had expected to receive an $8 billion grant under the CHIPS Act for its Ohio factories, but the payment had been delayed. Now, this support has been formalized through the government’s stake in the company.
In short, the U.S. government is both supporting the domestic chip industry and making a strategic investment in Intel.
