US takes 10% stake in Intel, Trump admin says

The Trump administration has seized a 10% stake in Intel, converting $10.9 billion in CHIPS Act grants into equity, making the government a major shareholder. Commerce Secretary Howard Lutnick announced, “BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies.”

This unprecedented move, finalized after Trump’s hint on August 22, 2025, prioritizes national security by securing domestic chip production amid tensions with China. Intel, valued at $108 billion, struggles with a 60% share drop from pandemic highs and lags in the AI chip boom. Trump’s prior demand for CEO Lip-Bu Tan’s resignation over alleged China ties underscores the administration’s aggressive oversight.

Japan’s SoftBank also injected $2 billion, signaling external confidence but not erasing Intel’s manufacturing woes. A 2003 congressional study warned such stakes expose taxpayers to “greater risk” without guaranteed returns. Unlike the 2008 bailouts, this occurs absent an economic crisis, marking a bold shift from free-market norms.

The deal, lacking governance rights, still raises concerns about federal influence over Intel’s operations, potentially deterring other firms from accepting CHIPS Act funds. This strategic intervention could reshape Intel’s future—or burden taxpayers with a faltering giant’s risks.