Intel will sell 10% of its company to the U.S. government

Intel is about to give up a tenth of itself to the U.S. government. The company’s stock shot up nearly 6% on Friday after Bloomberg broke the story.

The report said the Trump administration is preparing to announce that it’s taking an equity stake in the chipmaker. This isn’t a bailout. This is ownership. A full 10%. President Donald Trump confirmed the news later, saying, “They’ve agreed to do it and I think it’s a great deal for them.”

The company’s total market value is slightly over $100 billion. That means the government would get a piece worth about $10 billion. Trump made it clear he wants something real in return for the funding Intel’s been getting through the CHIPS Act. The deal isn’t fully sealed yet.

According to a White House official speaking to CNBC, “ongoing discussions” are still happening. Intel’s CEO Lip-Bu Tan hasn’t formally signed the papers. He’s expected to meet with Trump later that same day.

U.S. government links CHIPS funding to equity deals

Commerce Secretary Howard Lutnick told CNBC this week that the federal government wants shares in return for financial help. He said, “We should get an equity stake for our money,” and made it clear the money isn’t new. It’s the same CHIPS Act funding that was already approved during the Biden administration.

The twist is that instead of handing it over with no strings, the White House now wants a 10% cut of Intel. Lutnick added that the stake would be “nonvoting.” So they won’t control the company, but they’ll still own a big chunk of it.

This push for ownership isn’t just about Intel. It’s part of a broader shift in how the U.S. is handling tech companies tied to national security. The government is taking a more hands-on role. And Intel is right in the middle of it. They’re the only U.S. firm that can produce the most advanced semiconductors inside the country.

But they’re still trailing Taiwan Semiconductor Manufacturing Company, the top player making chips for Apple, Nvidia, Qualcomm, AMD — and even Intel itself.

Earlier this same week, Intel got another big investor. SoftBank said it’s pumping $2 billion into the company. That gives it a 2% stake. So between SoftBank and the U.S. government, Intel is about to give away 12% of itself in a single week.

Intel has been burning through billions trying to build up its U.S. manufacturing. The biggest project is a set of chip factories in Ohio. The company branded the region the “Silicon Heartland.” That’s where they plan to make top-level chips, including chips for artificial intelligence. But the money hasn’t been endless.

Back in July, CEO Tan sent a memo to workers. He said there would be “no more blank checks.” The company is now slowing down its factory plans. The massive Ohio facility won’t be up and running until 2030 — and that’s if market conditions don’t get worse.

Intel also confirmed last fall that it had locked in an $8 billion grant from the CHIPS and Science Act. That’s the same money now being used as leverage for the equity sale. The CHIPS Act itself was signed into law back in 2022, under the Biden administration. Now, under Trump, it’s being turned into a tool for government equity deals.

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