Trump Administration Acquires 9.9 Percent Stake in Intel for $8.9 Billion

WASHINGTON D.C. – The United States government has acquired a 9.9 percent equity stake in Intel Corporation, valued at $8.9 billion. The deal, announced by President Donald Trump and Intel CEO Lip-Bu Tan on August 22, 2025, converts previously awarded CHIPS Act grants and Secure Enclave program funds into common stock, marking a significant intervention in a major U.S. technology company.

The investment is intended to bolster domestic semiconductor manufacturing and leadership, a key priority for the Trump administration. According to Intel’s press release, the government purchased 433.3 million shares at $20.47 per share. While the government will hold a passive ownership without board representation or governance rights, the move has sparked debate regarding government involvement in private enterprise.

Daniel Di Martino, a fellow at the Manhattan Institute and a Ph.D. candidate in economics at Columbia University, criticized the acquisition in his recent op-ed for City Journal, titled "Trump’s Share in Intel Is a Big Government Blunder." Di Martino, a Venezuelan immigrant known for his critiques of socialist policies, argues that such government ownership sets a dangerous precedent. He stated in his piece, "If America wants to remain a First World country, it must take seriously the habits and values that make 'First World problems' possible in the first place."

Intel, a long-standing leader in the semiconductor industry, has faced challenges in recent years, including falling behind competitors in advanced chip technology. CEO Lip-Bu Tan, who took the helm in March, has been working to revitalize the company. The $8.9 billion investment is part of Intel's broader strategy to expand its U.S. manufacturing capacity, with over $100 billion planned for domestic sites.

The deal has drawn varied reactions, with some praising it as a necessary step to secure the U.S. technology supply chain and others, like Di Martino, expressing concerns about its long-term implications for free markets. Commerce Secretary Howard Lutnick lauded the agreement, stating on X, "The United States of America now owns 10% of Intel, one of our great American technology companies." Conversely, some Republican lawmakers voiced criticism, viewing it as a move towards a "semi-state owned enterprise." The agreement also includes the elimination of existing claw-back and profit-sharing provisions related to previous CHIPS Act grants to Intel.