The U.S. government is set to invest $8.9 billion into Intel, largely utilizing funds that were already designated for the company under previous agreements. In a statement released on Friday, Intel announced that the federal funding will come from the remaining $5.7 billion in grants under the Biden administration’s CHIPS Act, supplemented by the $3.2 billion already allocated through the Secure Enclave program.
President Donald Trump publicly confirmed the investment during a press briefing prior to the official announcement. He stated that Intel CEO Lip-Bu Tan agreed to grant the U.S. government a 10 percent equity stake. Earlier this month, Trump had urged Tan to step down over allegations concerning his connections to China, framing this deal as a means for Tan to maintain his position.
During his remarks, Trump revealed that he proposed the partnership to Tan during negotiations. “I believe having the United States as your partner would be beneficial,” he said. “They’ve agreed to it, and I believe it’s a tremendous deal for them.” To date, Intel has received $2.2 billion from the CHIPS Act.
Intel clarified that the government’s investment will entail a passive ownership model, which excludes any representation on the board of directors or additional governance rights. “We appreciate the trust that the President and his administration have placed in Intel, and we are excited to work together to enhance U.S. technology and manufacturing leadership,” Tan stated in the accompanying press release.
This deal comes on the heels of SoftBank’s recent announcement of a $2 billion investment aimed at bolstering chip production in the United States.
The U.S. government’s involvement with Intel symbolizes a growing trend of intertwining governmental and corporate interests, further indicated by reports that the Trump administration has urged Nvidia and AMD to pay a 15 percent cut on chip sales directed to China.
Treasury Secretary Scott Bessent hinted earlier in the week that the government’s investment would essentially convert existing grant allocations into a strategy to stabilize Intel and support domestic chip production.
Trump also indicated during the briefing that he plans to pursue additional deals like this in the future.
Update, August 22nd: Information from Intel has been added.
