Topline
President Donald Trump on Friday said Intel agreed to give the U.S. a 10% stake in the company, making the U.S. the beleaguered chipmaker’s third-largest shareholder in one of the largest government interventions in an American company in more than a decade.
The beleaguered chipmaker has been “left behind” its competitors, Trump said.
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Key Facts
Trump said the agreement, representing a 10% stake work roughly $10 billion, resulted from his meeting with Intel CEO Lip-Bu Tan last week, telling reporters Friday, “I said, ‘I think it would be good having the United States as your partner.’”
The deal will likely require approval from Intel’s board of directors.
A 10% stake would represent the third-largest institutional holding in Intel, behind 13% stakes held by Blackrock and Vanguard.
An agreement—expected to be formally announced later Friday—would boost Intel, which has been “left behind” its competitors in the chipmaking industry, Trump said.
Shares of Intel rose more than 6% to just below $24 after Trump announced the agreement.
Surprising Fact
Earlier this month, Trump called Tan “highly CONFLICTED” and said he should resign “immediately,” after Sen. Tom Cotton, R-Ark., questioned Intel’s board over his alleged ties to Chinese firms. Cotton asked whether Tan divested from Chinese companies linked to the Chinese military or Communist Party, and whether Intel’s board was aware of a criminal case involving Cadence Design, where Tan served as CEO before being hired at Intel in March. Tan disputed the claims in a memo to Intel employees, writing there was “a lot of misinformation circulating about my past roles” and arguing he has “always operated within the highest legal and ethical standards.” Trump’s opinion on Tan changed after meeting in the White House last week, when Trump lauded Tan as “an amazing story.”
Tangent
A 10% stake would rank the U.S. just above SoftBank, which announced earlier this week it would invest $2 billion in Intel as part of both firms “investing in advanced technology and semiconductor innovation” in the U.S. The investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel.
Key Background
An investment by the U.S. in Intel developed over the last week, as Trump administration officials reportedly discussed converting grants under the CHIPS Act into an equity stake. Such a partial ownership in a U.S.-based company is historically rare, though the federal government previously injected billions of funds into Chrysler and General Motors to help restore the auto industry after the 2008 financial crisis. In the early 20th century, the U.S. provided financial support through the Reconstruction Finance Corporation, which was created by President Franklin Roosevelt to stabilize struggling banks, railroads and other firms during the Great Depression. The Treasury Department also provided loans through the COVID-19 pandemic, during which the U.S. took up rights to buy stock in airlines like Delta, United and Southwest.
Further Reading
Source: https://www.forbes.com/sites/tylerroush/2025/08/22/trump-says-intel-will-give-10-stake-to-us-becoming-third-largest-shareholder/
