Donald Trump
By Olamilekan Tosin
The US government has acquired a 10% stake in Intel, a leading US chipmaker, in a deal announced by President Donald Trump. The agreement marks a significant intervention in the company’s affairs, with the US government receiving 433.3 million shares of common stock, valued at $8.9 billion.
The investment is funded partially by $5.7 billion in grants awarded but not yet paid under the CHIPS and Science Act, and $3.2 billion from the Secure Enclave program. This brings the total amount to $11.1 billion, including $2.2 billion in CHIPS grants Intel has already received.
Commerce Secretary Howard Lutnick hailed the arrangement as “historic,” saying it strengthens US leadership in semiconductors, which will both grow the economy and help secure America’s technological edge. Intel CEO Lip-Bu Tan welcomed the move, emphasizing Intel’s commitment to ensuring the world’s most advanced technologies are American-made.
The deal has sparked debate, with some critics warning that government ownership could distort market dynamics and discourage private-sector innovation. Independent tech analyst Rob Enderle said it’s a step toward nationalizing private business, bringing “chills” to those who value market-driven decisions. Scott Lincicome of the Cato Institute also expressed concerns, saying the government having a stake in Intel would be “a terrible decision, bad for almost everyone,” potentially harming the company’s long-term viability and making it a target for foreign governments.
Despite these concerns, the deal could provide Intel with more breathing room to revive its loss-making foundry business. The company has struggled in recent years, falling behind rivals Nvidia and TSMC, but has received significant investments, including a $2 billion capital injection from SoftBank Group. Intel’s shares rose over 6% following the announcement.
