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By Gabe Whisnant
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President Donald Trump said Friday that Intel will give the U.S. government a 10% stake in the company, an agreement he said followed a meeting last week with CEO Lip-Bu Tan — just days after Trump had called for Tan's resignation over his past ties to China.
"I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it."
Intel said in a statement that the government's planned stake in the company will be a passive investment, with no board seats or special governance rights. The government agreed to vote in line with Intel's board on shareholder matters, except in limited circumstances, the company said.
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"The government's investment in Intel will be a passive ownership, with no Board representation or other governance or information rights. The government also agrees to vote with the Company's Board of Directors on matters requiring shareholder approval, with limited exceptions," the statement read.
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Why It Matters
The Trump administration has been negotiating a 10% stake in Intel by converting grants the company was awarded under former President Joe Biden. The deal would make the U.S. government one of Intel's largest shareholders and blur the traditional boundary between the public and private sectors in the world's biggest economy.
It isn't unprecedented for the U.S. government to take a major stake in a company. During the 2008 financial crisis, Washington, under both Republican President George W. Bush and Democratic President Barack Obama, invested nearly $50 billion in General Motors for about a 60% ownership share as the automaker neared bankruptcy, later selling its stock at a loss of roughly $10 billion.
What To Know
The U.S. government is getting the stake through the conversion of $11.1 billion in previously issued funds and pledges. All told, the government is getting 433.3 million shares of non-voting stock priced at $20.47 apiece — a discount from Friday's closing price at $24.80. That spread means the U.S. government already has a gain of $1.9 billion, on paper.
The company said the deal "reflects the confidence the Administration has in Intel to advance key national priorities" and reaffirmed its commitment to provide secure semiconductors to the Defense Department.
Intel stressed the arrangement does not give the government access to company information or decision-making authority.
In his second term, Trump has sought to reshape the chip industry, requiring Nvidia and Advanced Micro Devices to pay a 15% commission on sales to China in exchange for export licenses. His push for a stake in Intel also reflects his drive to expand U.S. chip production, a centerpiece of his global trade war. By reducing reliance on overseas manufacturing, Trump says, the U.S. will be better positioned to keep its technological edge over China in the race to develop artificial intelligence.
On Aug. 7, Trump posted a demand that Lip-Bu Tan resign, less than five months after the Santa Clara, California, company hired him. The call followed reports raising national security concerns about Tan's past investments in Chinese tech firms while he was a venture capitalist. But Trump reversed course after Tan affirmed his loyalty to the U.S. in a letter to employees and later met with the president at the White House, where Trump praised him for having an "amazing story."
What to Know About Intel Stock
The struggling Silicon Valley chipmaker is in the process of jettisoning more than 20,000 workers as part of its latest attempt to bounce back from years of missteps taken under a variety of CEOs. The deal follows Monday's disclosure that Japan's SoftBank Group is building a 2% stake in Intel, which is valued at just over $100 billion.
Intel shares have rebounded notably in recent months, despite broader challenges facing the chipmaker. The stock is up roughly 26% year‑to‑date and has gained about 18% over the past year, though it remains down nearly 48% compared to five years ago. Intel shares climbed 5.5% Friday after Trump's announcement.
What People Are Saying
Lip-Bu Tan, CEO of Intel, said in Friday's statement, "As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world's most advanced technologies are American made. President Trump's focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country's economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership."
Trump posted Friday on Truth Social, "It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future. I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter."
Commerce Secretary Howard Lutnick told CNBC Tuesday, "It's not governance, we're just converting what was a grant under Biden into equity for the Trump administration, for the American people. Nonvoting."
He added, "We should get an equity stake for our money. So we'll deliver the money, which was already committed under the Biden administration. We'll get equity in return for it."
What Happens Next
A White House official, speaking on condition of anonymity, said the agreement is expected to be announced later Friday.
Update: 8/22/25, 5:49 p.m. ET: This article was updated with new information and remarks.
Update: 8/22/25, 6:14 p.m. ET: This article was updated with new information and remarks.
Update: 8/22/25, 6:44 p.m. ET: This article was updated with new information and remarks.
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