Intel Corporation has announced an agreement with the Trump Administration that will see the United States government invest $8.9 billion in Intel common stock. This move is intended to support the expansion of American technology and manufacturing leadership, particularly within the domestic semiconductor industry.
The investment includes funds from two sources: $5.7 billion in grants previously awarded but not yet paid under the U.S. CHIPS and Science Act, and $3.2 billion from the Secure Enclave program. These are in addition to $2.2 billion in CHIPS grants already received by Intel, bringing total government support to $11.1 billion.
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” said Lip-Bu Tan, CEO of Intel. “President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”
Howard Lutnick, United States Secretary of Commerce, stated: “Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world,” adding, “As more companies look to invest in America, this administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security.”
According to terms of this agreement, 433.3 million primary shares will be purchased at $20.47 per share—representing a 9.9 percent stake—with no board representation or governance rights for the government beyond voting with Intel’s Board on shareholder matters except for limited exceptions.
The deal also includes a five-year warrant at $20 per share for an additional five percent of shares if Intel’s foundry ownership drops below 51%. The arrangement removes claw-back and profit-sharing provisions linked with earlier CHIPS Act funding.
Over recent years, Intel has invested heavily within its U.S.-based operations—$108 billion in capital expenditures and $79 billion toward research and development over five years—to expand domestic capacity and develop process technology.
Intel is currently expanding its chipmaking facilities domestically with over $100 billion allocated for site growth; its new Arizona fabrication facility is expected to start high-volume production later this year using advanced process technology.
Since taking over as CEO in March, Lip-Bu Tan has focused on strengthening finances and execution at Intel while fostering an engineering-driven culture.
Other leaders across technology companies commented on this development:
Satya Nadella, Chairman and Chief Executive Officer at Microsoft said: “The decades-long partnership between Microsoft and Intel has pioneered new frontiers of technology and showcased the very best of American ingenuity and innovation. Intel’s continued investment in strengthening the U.S. semiconductor supply chain, supported by President Trump’s bold strategy to rebuild this critical industry on American soil, will benefit the country and broader technology ecosystem for years to come.”
Michael Dell, Chairman and Chief Executive Officer at Dell Technologies stated: “The industry needs a strong and resilient U.S. semiconductor industry, and no company is more important to this mission than Intel. It’s great to see Intel and the Trump Administration working together to advance U.S. technology and manufacturing leadership. Dell fully supports these shared priorities, and we look forward to bringing a new generation of products to market powered by American-designed and manufactured Intel chips.”
Enrique Lores, President & CEO at HP added: “We share Intel’s and the Trump Administration’s deep commitment to building a strong, resilient and secure U.S. semiconductor industry. Intel’s continued investment in domestic R&D and manufacturing is integral to future innovation and will strengthen the partnership between HP and Intel for years come. This is a defining moment for great American companies to lead the world in cutting-edge technologies that will shape the future.”
Matt Garman, AWS CEO remarked: “Leading-edge semiconductors are the bedrock of every AI technology and cloud platform, making U.S. investment in this critical industry one of the most important technological, economic and national security imperatives of our time. Intel plays a vital role as one of the country’s leading chip manufacturers and we applaud the Trump administration’s efforts to usher in a new era of American innovation in partnership with American companies.”
PJT Partners served as financial advisor for this transaction.
Further information about Intel can be found online.
