Intel stake deal: Donald Trump secures 10% US ownership; CEO Lip-Bu Tan pledges American tech leadership

The United States government has acquired a 10 per cent holding in Intel, marking one of the most striking federal interventions in a private company since the 2008 auto bailouts.

US President Donald Trump announced the agreement on Friday, describing the deal as “a great partnership for America and for Intel.”According to filings and statements, Washington is obtaining 433.3 million shares of the Silicon Valley chipmaker, issued at $20.47 apiece, well below Friday’s closing price of $24.80.On paper, the government begins with a $1.9 billion gain, as reported by the news agency AP. The $8.9 billion equity purchase is being funded through previously pledged CHIPS Act grants, together with an additional $3.2 billion from the Secure Enclave programme.

When added to earlier payments, the total government commitment rises to $11.1 billion.Although the stake makes the US one of Intel’s largest shareholders, it carries no voting rights or board representation, a point Intel emphasised in its own statement. The company’s chief executive, Lip-Bu Tan, welcomed the move, saying Intel remained “deeply committed to ensuring the world’s most advanced technologies are American made”, as per AFP.

“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”, he added.The deal unfolded rapidly. Just weeks ago, Trump had urged Tan to step down over concerns about his past investments in Chinese firms. But after the Malaysian-born executive pledged loyalty to the US in a letter to employees and met with the president at the White House, the tone shifted, as per AP. By mid-August, discussions had advanced to the point where, according to the New York Times, Trump pressed Intel to part with a tenth of its equity.Commerce secretary Howard Lutnick hailed the arrangement as “historic,” arguing that it converted what had been Biden-era subsidies into “equity for the American people.” Intel shares rose more than six per cent following the announcement.Still, critics have sounded alarms. As per AP, Scott Lincicome of the Cato Institute warned the move was “a horrendous decision” that risks entangling politics with commercial choices. Tech analyst Rob Enderle called it a “slippery slope” toward nationalisation, as quoted by news agency AFP. Some investors, like Nancy Tengler of Laffer Tengler Investments, questioned whether taxpayers would see any return, warning of government meddling in corporate strategy.The intervention comes as Intel battles to recover from $22 billion in losses since 2023, large-scale layoffs, and missed opportunities in the smartphone and AI revolutions.

While once a Silicon Valley titan, its $108 billion valuation is now dwarfed by Nvidia’s $4.3 trillion market capitalisation.Whether the government’s stake will help turn the company around, or simply raise new concerns about political interference, remains uncertain. As Ben Bajarin of Creative Strategies was quoted as saying by the New York Times, “Once the government becomes a stakeholder, the question is: what will they do to protect their investment?”