Trump Says Intel Agrees to Give US 10% Stake Worth $10 Billion

President Donald Trump said Friday that the United States will receive a $10 billion equity stake in Intel, following an agreement with the company’s CEO, Lip-Bu Tan. The deal would give the government a 10% stake in the chipmaker, which Trump described as a “great deal for both sides.”

“I said, I think you should pay us 10% of your company,” Trump recalled of his conversation with Tan. “And they said yes.”

The announcement marks an unusual move by the federal government to take equity positions in private companies, something the Trump administration has recently signaled it could replicate with other key industries. The White House said the goal is to bolster US leadership in semiconductor manufacturing, a sector seen as vital to both economic growth and national security.

Intel, once a leader in the global chip industry, has struggled in recent years as rivals surpassed it in developing advanced technology. Tan, who became CEO in March, has been working on a turnaround that included laying off 15% of the company’s workforce. Intel has also faced delays in opening a new manufacturing facility in Ohio.

Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick confirmed that the deal was likely facilitated by converting CHIPS Act funding into equity. “America should get the benefit of the bargain,” Lutnick told CNBC. He later posted online: “The United States of America now owns 10% of Intel, one of our great American technology companies.”

Intel’s stock rose 7% following the news. Japan’s SoftBank also announced a $2 billion investment in Intel earlier this week.

While supporters say the stake will stabilize Intel and strengthen America’s semiconductor industry, analysts note the investment may not solve the company’s deeper issues, including lagging technology compared to competitors like Taiwan Semiconductor Manufacturing Company (TSMC).

Trump said he hopes to pursue similar arrangements with other companies, framing the Intel agreement as the first step in a broader strategy.

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