Reinforcing supply chain resilience, a historic $8.9 billion US government stake in Intel aims to boost America’s chipmaking push, along with national security and AI leadership.
Intel has reached an agreement with the Trump Administration that will see the US government invest $8.9 billion in the company’s common stock. This move aims to strengthen the US’s domestic semiconductor production and supply chains.
According to an official statement released by Intel, the government will acquire a 9.9% stake through the purchase of 433.3 million shares at $20.47 each.
Furthermore, the funding will be drawn from previously awarded but unpaid grants under the CHIPS and Science Act, along with allocations from the Secure Enclave programme.
This brings total government support for Intel to $11.1 billion, including earlier awards. Officials confirmed the investment would remain passive, with no government role on Intel’s board or decision-making.
Intel has pledged to meet its existing Secure Enclave commitments and continue developing trusted semiconductor technologies for the Department of Defense. A five-year warrant has also been issued, giving the government the option to purchase an additional 5% stake if Intel’s ownership in its foundry business falls below 51%.
Commenting on the matter, Lip-Bu Tan, Intel’s chief executive, said, “As the only semiconductor company that does leading-edge logic R&D and manufacturing in the US, Intel is deeply committed to ensuring the world’s most advanced technologies are American-made.”
Howard Lutnick, US Secretary of Commerce, added: “Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world.”
Intel highlighted that the deal comes as Intel undertakes more than $100 billion in domestic expansion, including new fabrication facilities in Arizona expected to begin production this year.
Despite all the recent challenges and lay-offs, over the past five years, the company has invested $108 billion in capital and $79 billion in R&D, primarily focused on US operations.
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