US Government Secures 10% Stake in Intel with $8.9 Billion Investment
In a landmark move to bolster domestic semiconductor production, the US government has officially acquired a 10% stake in Intel for $8.9 billion, marking one of the largest direct federal investments in a private technology company.
The Trump administration announced that the United States government has finalized an $8.9 billion deal to purchase a 10% equity stake in Intel, strengthening efforts to reclaim leadership in semiconductor manufacturing and reduce reliance on foreign supply chains.
Officials said the investment is part of a broader national strategy under the CHIPS and Science Act, aimed at reviving advanced microchip production within US borders amid escalating competition with China and persistent supply chain vulnerabilities exposed during the pandemic.
Intel, one of the world’s largest semiconductor makers, has been at the center of Washington’s industrial policy push. The government’s ownership stake will give it a significant voice in the company’s long-term strategy, though Treasury officials emphasized that Intel’s management will continue to operate independently.
The $8.9 billion deal immediately positions Washington as one of Intel’s largest shareholders. Market analysts said the decision underscores the government’s determination to directly support strategic industries, a departure from its traditional role of relying solely on incentives and grants.
The stake purchase is expected to spark debate in Congress and among investors about the role of government in private enterprise. Supporters argue the move ensures long-term national security and economic stability, while critics worry it could distort competition and push the US further toward state-managed industrial policy.
Intel shares edged higher in after-hours trading following the announcement, as investors anticipated stronger capital support for the company’s ambitious expansion plans.
