In a surprising move that shook the business world, the Trump administration announced in August 2026 that the United States government had acquired a 10% stake in chipmaker Intel. Commerce Secretary Howard Lutnick broke the news, calling it a historic agreement that strengthens U.S. leadership in semiconductors.
Details of the Agreement
"BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies. This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America's technological edge. Thanks to Intel CEO @LipBuTan1 for striking a deal that's fair to Intel and fair to the American People," Lutnick wrote in a post on X.
In an interview with Fortune magazine, President Donald Trump shared the story behind the equity strategy. The grants that the government had given Intel were converted into equity. Trump recalled, "[Intel CEO Lip-Bu Tan] came in to see me. I liked him, I thought he was good." Trump also had leverage: substantial federal grants for chipmaking that had been earmarked but not yet delivered to Intel. "I said, 'Give the country 10% ownership for free in Intel,'" the president recalled. "He said, 'You have a deal.' I said, 'Shit, I should have asked for more.'"
Trump's Vision for Intel
Trump expressed his belief that Intel should be the dominant chipmaker globally. "Intel should be the biggest company in the world right now," he said. "If I had been president when all these companies started sending their chips in from China, I would have put a tariff on that would have protected Intel." Referring to Taiwan Semiconductor Manufacturing Co. (TSMC), currently the world's leading chipmaker, he added, "Intel would have all that business now, and there would be no Taiwan."
President Trump also announced the deal on Truth Social, stating, "The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL." He further told reporters at the White House, "They've agreed to do it and I think it's a great deal for them."
Intel's Statement on Government Stake
Intel, the only American company capable of making advanced chips on U.S. soil, issued a press release detailing the investment. The government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company. Intel noted that the price the government paid was a discount to the current market price. Additionally, the U.S. government will not have a board seat or other governance rights.
"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," Intel CEO Lip-Bu Tan said in the press release.
This deal marks a significant step in the U.S. government's efforts to bolster domestic semiconductor production and reduce reliance on foreign chipmakers. The equity stake provides the government with a financial interest in Intel's success while allowing the company to maintain operational independence.
