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US Takes Nearly 10% Intel Stake, Clinching Unorthodox Deal

US Takes Nearly 10% Intel Stake, Clinching Unorthodox Deal
Under the deal, the US will receive 433 million shares from Intel. (Image: Bloomberg)

President Donald Trump sealed a deal that gives the US government a nearly 10% stake in Intel Corp., part of an unconventional bid to reinvigorate the beleaguered company and boost domestic chip manufacturing.

Under the agreement, the US will receive 433.3 million shares of common stock — representing 9.9% of the fully diluted common shares in Intel — according to a statement from the company. The $8.9 billion investment will be funded by grants from the US Chips and Science Act and Secure Enclave program that had previously been extended but not yet paid, Intel said, confirming a report by Bloomberg News.

Together with the $2.2 billion in Chips Act money that Intel already received, the investment totaled $11.1 billion. The government will be a passive owner, with no board seat or other governance or information rights, Intel said.

“We are grateful for the confidence the president and the administration have placed in Intel, and we look forward to working to advance US technology and manufacturing leadership,” Intel Chief Executive Officer Lip-Bu Tan said in the statement. 

Intel shares rose 5.5% to $24.80 at the close in New York on Friday. They slipped about 1% in choppy postmarket trading after the deal was finalized.

In a social media post, Trump described the transaction as a “great Deal for America and, also, a great Deal for INTEL.”

“Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation,” he said.

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