US Gov To Gain 10% Stake In Intel With $8.9 Billion Investment & Joins TikTok

Recently, we reported that the Trump administration was considering obtaining a 10% stake in microchip bigwig Intel Corp., as per people familiar with the matter.

Now, that speculation has been put to rest, as the company revealed that the deal has gone ahead.

As per a news release published on its website, Intel has signed an agreement with the U.S. Government (under the Trump Administration), which will see the U.S. Gov make an investment of $8.9 billion in Intel common stock.

The investment will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, under the U.S. CHIPS and Science Act—as well as $3.2 billion awarded to the company as part of the Secure Enclave program.

As such, the government will receive 433.3 million primary shares of Intel common stock, priced at a discounted $20.47 per share (as compared to the current market price), which is equal to a 9.9% stake of the company. Furthermore, the government will receive a five-year warrant, at $20 per share for an additional 5% of Intel common shares, which will be exercisable only if Intel ceases to own at least 51% of the foundry business.

The U.S. government’s ownership will be passive and not possess any Board representation, governance, or information rights. Although it will vote on matters requiring shareholder approval, with limited exceptions.  

The amount is an addition to the $2.2 billion Intel has already received through the CHIPS grant, bringing the total investment up to $11.1 billion.

The move will allow it to deliver on its Secure Enclave obligations and provide the U.S. Department of Defense with trusted and secure microchips.

“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,” said Lip-Bu Tan, CEO of Intel. “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.”

Howard Lutnick, United States Secretary of Commerce, confirmed the investment through a post on X, which read, “The United States of America now owns 10% of Intel, one of our great American technology companies. This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge. Thanks to Intel CEO @LipBuTan1 for striking a deal that’s fair to Intel and fair to the American People.”


As per Intel, the investment reflects the “confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry.”

“As more companies look to invest in America, this administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security,” added Lutnick.

It comes at a time when Intel is undergoing turmoil in the industry, slipping from one of the most prominent names in advanced microchips to a lowly competitor.

Even Intel’s new CEO, Lip-Bu Tan, voiced his concerns about the company’s capabilities to compete in the AI race, claiming the company can’t catch up to leaders such as NVIDIA, and isn’t even among the top 10 semiconductor firms.

The move adds to the President’s recent run of deals and investments to push artificial intelligence (AI) and other technologies, as well as innovation and manufacturing in the country.

The Trump administration has also been offering tax benefits and incentives for companies bringing jobs, manufacturing, and investments to the country.

It’s even been trying to sway the ownership of popular products in the country, but not originating from it, such as TikTok.

The social networking site was blocked one day before President Trump returned to office—a ban that lasted less than a day. At the time, Trump said the block would be lifted if the company could find ownership within the country and even extended the deadline for its sale.

Now, TikTok is on the verge of yet another extension, one that comes just days after the White House joined the platform.

Addressing concerns surrounding security, President Trump said the administration would watch for any problems, and he would talk to Chinese President Xi Jinping “at the right time.”

Do you think the investment by the U.S. government in Intel will boost the company’s confidence and performance, allowing it to capture a stronger position in the microchip sector?

Do you think the White House’s presence on TikTok is an indication that the platform is close to finding a U.S.-based owner soon?

Let us know in the comments below!