Daijiworld Media Network - Washington

Washington, Aug 23: Chipmaker Intel has agreed to give the US government a nearly 10-percent stake in the company, in a deal announced Friday by President Donald Trump and Intel.

Under the agreement, the US will receive 433.3 million shares of common stock, representing a 9.9% stake, valued at $8.9 billion. The funding comes partly from $5.7 billion in CHIPS and Science Act grants awarded under the Biden administration and $3.2 billion from Intel’s Secure Enclave program. Combined with $2.2 billion already received, Intel’s total grants reach $11.1 billion.

Trump hailed the deal on Truth Social, claiming the US "paid nothing for these shares" and emphasizing the symbolic value of having the United States as a partner. Intel clarified that the government’s ownership will be passive, with no board representation or governance rights.

Commerce Secretary Howard Lutnick called it a “historic agreement” strengthening US leadership in semiconductors.

Intel, historically a leader in Silicon Valley, faces competition from Asian giants TSMC and Samsung. The CHIPS and Science Act was intended to boost the US semiconductor sector with billions in grants, including a $7.9 billion direct funding award to Intel finalized in November 2024.

Analysts, however, have warned of risks. Independent tech expert Rob Enderle called it a “slippery slope” toward nationalizing private business, while Scott Lincicome of the Cato Institute said government stakes could harm Intel’s long-term viability and expose it to foreign pressure.

Intel CEO Lip-Bu Tan reaffirmed the company’s commitment to American-made advanced technologies and announced plans to invest over $100 billion to expand US operations. Earlier this month, Trump had also demanded Tan resign amid national security concerns over his links to Chinese firms.