U.S. Govt Acquires 10% Stake in Intel for $8.9 Bn

President Donald Trump has confirmed that the United States government now owns 10% of Intel Corp, a move he called “a great deal for America and for Intel”.

Intel, the only American company capable of making advanced chips on U.S. soil, also said in a press release that the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company.

The US government acquired a 10% stake in Intel Corp through a combination of CHIPS Act funding and Pentagon-backed initiatives. This $8.9 billion infusion is aimed at fortifying domestic semiconductor production and reducing reliance on foreign supply chains. 

Deal Details

• Investment Value: $8.9 billion
• Share Price: $20.47 per share
• Shares Acquired: ~433.3 million

Funding Sources:

• $5.7B from CHIPS and Science Act grants
• $3.2B from Pentagon’s Secure Enclave program

Strategic Implications

• No Board Seat or Governance Rights: The government will not influence Intel’s internal decisions
• Warrant Clause: U.S. may acquire an additional 5% if Intel loses majority control of its foundry business
• National Security Focus: Trump emphasized the need to secure U.S. dominance in semiconductor manufacturing

Market Reaction

Intel shares surged 6–7% following the announcement, signaling investor optimism about the deal’s stabilizing effects.

Policy Shift

This move breaks with decades of hands-off government policy toward private corporations. Trump’s administration is now tying federal support to direct equity stakes, signaling a new era of economic statecraft.

Other Similar Tech Deals Globally

Several recent government-backed tech deals across the globe reflect a growing trend of governments stepping in to secure strategic digital infrastructure, bolster national security, and assert technological sovereignty. France has deepened its commitment to cloud sovereignty by investing in Bleu—a secure cloud venture spun off from Atos and co-owned with Orange. The French government’s support includes equity participation and long-term public sector contracts to ensure data localization and defense-grade infrastructure.

India has also made a notable move by channeling ₹3,000 crore into Bharat Electronics Ltd (BEL) via its defense modernization fund. This capital is earmarked for the development of AI-enabled battlefield systems and secure communication technologies, with the government maintaining oversight through board representation.

Germany, in a more enterprise-focused strategy, has backed the SAP specialist Cpro through a co-financing arrangement with private equity firm Egeria. The goal is to strengthen digital capabilities among small and medium-sized enterprises, aligning with Germany’s broader push for digital sovereignty in enterprise software.

China continues to lead in scale, expanding its state holdings in semiconductor giants like SMIC, Hua Hong, and Yangtze Memory. Through the National IC Fund Phase III, over $30 billion has been allocated to accelerate domestic chip manufacturing and reduce dependence on Western technologies. These deals collectively underscore a shift toward AI-first mergers, cloud infrastructure localization, and defense-tech fusion, with governments increasingly acting as strategic investors rather than passive regulators.