US-Intel Deal
An agreement where the US government acquired a 10% stake in Intel in exchange for funds previously allocated as grants under the CHIPS Act. This represents a new model of government investment in strategic industries.
entitydetail.created_at
8/31/2025, 4:31:52 AM
entitydetail.last_updated
8/31/2025, 5:04:33 AM
entitydetail.research_retrieved
8/31/2025, 4:39:09 AM
Summary
The US-Intel Deal signifies a pivotal shift in US industrial strategy, where the US government, under the Trump administration, acquired a 9.9% equity stake in Intel for $8.9 billion. This 'Equity for Grants Model' was adopted instead of providing traditional grants under the CHIPS Act, and was influenced by figures like Howard Lutnik. The primary objectives of this strategic move are to bolster national security, enhance competitiveness against state-backed industries in China, and reduce reliance on foreign manufacturers such as TSMC. The investment was funded by $5.7 billion in previously allocated CHIPS Act grants and an additional $3.2 billion from the Secure Enclave program. This deal also aimed to prevent Intel from selling its chip fabrication business and ensure the continued expansion of American technology and manufacturing leadership. The deal has prompted discussions about establishing a US Sovereign Wealth Fund, with proposals to direct its returns towards the OASI to address the Social Security crisis, a measure that would require congressional approval.
Referenced in 1 Document
Research Data
Extracted Attributes
Deal Model
Equity for Grants Model
Primary Goal
National Security
Price Per Share
$20.47
Funding Source 1
$5.7 billion from CHIPS Act grants (previously allocated)
Funding Source 2
$3.2 billion from Secure Enclave program
Intel R&D Campus
Hillsboro, Oregon, USA
Secondary Goal 1
Compete with China's state-backed industries
Secondary Goal 2
Reduce reliance on foreign manufacturers (e.g., TSMC)
Secondary Goal 3
Expand American technology and manufacturing leadership
Secondary Goal 4
Prevent Intel from selling its chip fabrication business
Shares Purchased
433.3 million shares
Governance Rights
Passive ownership, no Board representation or governance rights, agrees to vote with Board (with limited exceptions)
Investment Amount
$8.9 billion
Intel Headquarters
Santa Clara, California, USA
Equity Stake Acquired
9.9%
Timeline
- The US government announced an agreement to take a 9.9% equity stake in Intel for $8.9 billion, converting previously allocated grants into an equity share. (Source: web_search_results)
2025-08-22
- Intel's chief financial officer confirmed the company had received $5.7 billion from the US government as part of the deal. (Source: web_search_results)
2025-08-29
Web Search Results
- US to take 10% equity stake in Intel, in Trump's latest corporate move
Under the agreement, the U.S. will purchase a 9.9% stake in Intel for $8.9 billion, or $20.47 per share, which represents a discount of about $4 from Intel's closing share price of $24.80 on Friday. The purchase of the 433.3 million Intel shares will be made with funding from the $5.7 billion in unpaid grants from the Biden-era CHIPS Act and $3.2 billion awarded to Intel for the Secure Enclave program, also awarded under Trump's predecessor, Democratic President Joe Biden. [...] - President Donald Trump said on Friday the U.S. would take a 10% stake in Intel (INTC.O), opens new tab under a deal with the struggling chipmaker that converts government grants into an equity share, the latest extraordinary intervention by the White House in corporate America. [...] Commerce Secretary Howard Lutnick said on X that Tan had struck a deal "that's fair to Intel and fair to the American People." PLAYING CATCH UP The Intel investment marks the latest unusual deal with U.S. companies, including a U.S. government agreement allowing AI chip giant Nvidia NVDA.O to sell its H20 chips to China in exchange for receiving 15% of those sales.
- Intel and Trump Administration Reach Historic Agreement to ...
-- Intel Corporation today announced an agreement with the Trump Administration to support the continued expansion of American technology and manufacturing leadership. Under terms of the agreement, the United States government will make an $8.9 billion investment in Intel common stock, reflecting the confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry. [...] Under the terms of today’s announcement, the government agrees to purchase 433.3 million primary shares of Intel common stock at a price of $20.47 per share, equivalent to a 9.9 percent stake in the company. This investment provides American taxpayers with a discount to the current market price while enabling the U.S. and existing shareholders to benefit from Intel’s long-term business success.
- Intel confirms it has already received $5.7 billion from US ...
Image 23: GettyImages-2231745323.jpg (Image credit: Getty Images) Intel's chief financial officer has confirmed the company has received $5.7 billion from the Trump administration as part of a deal that sees the US government taking a 10% stake in the company, as per CNBC. Although this move is highly unprecedented, with some Republican lawmakers likening it to socialism, or communism, Intel claims it was part of a move to prevent it from selling its chip fabrication business. [...] 1. Tech Industry 2. Manufacturing 3. Semiconductors Intel confirms it has already received $5.7 billion from US government, CFO claims the deal was to halt the sale of its chip fabs News By Jon Martindale published 29 August 2025 The $5.7 billion investment will see the US government take a 10% stake in Intel, with the Commerce Department said to be ironing out the details. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. [...] Published Time: 2025-08-29T11:44:11Z Intel confirms it has already received $5.7 billion from US government, CFO claims the deal was to halt the sale of its chip fabs | Tom's Hardware Skip to main content Open menu Close main menu Image 2: Tom's HardwareTom's Hardware US Edition Image 3: flag of US Image 4: flag of UK UKImage 5: flag of US USImage 6: flag of Australia AustraliaImage 7: flag of Canada Canada
- Intel's US Equity Deal: Details, Risks, Big Tech's Support And Other ...
In its Friday announcement, the Santa Clara, Calif.-based company called the deal to give the U.S. government a 9.9 percent equity stake using $8.9 billion in previously allocated CHIPS and Science Act grants a “historic” agreement that will support the “continued expansion of American technology and manufacturing.” Related: [Intel’s Earnings Bombshell: Layoffs, Foundry Warning And Other Things To Know] [...] In Intel’s Monday SEC filing, the company said it entered the U.S. equity deal with the Department of Commerce, whose leader has played a key role in the development. “Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world,” said Secretary of Commerce Howard Lutnick, who signed the purchase agreement with Tan, said in a Friday statement. [...] Intel said Friday the U.S. government will make an $8.9 billion investment using previously allocated CHIPS and Science Act grants to buy Intel common stock. The company said the federal government is using funds, which were previously earmarked as federal grants, to purchase 433.3 million primary shares of Intel common stock at a discounted price of $20.47 per share. Intel’s stock price opened on Friday at $23.65 per share and closed at $24.8 per share by the end of the day.
- Intel agrees to give US government $8.9B stake in its company - OPB
Intel, which has a major research and development campus in Hillsboro, Oregon, said in a statement the U.S. government will buy $8.9 billion in Intel common stock. Nearly $6 billion of that will be funded with previously awarded, but not yet paid, grants from the U.S. CHIPS and Science Act, according to the company. [...] Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Tan — which came days after the president called for him to resign over his past ties to China. “I said, I think it would be good having the United States as your partner,” Trump said. “He agreed, and they’ve agreed to do it.” [...] “The government’s investment in Intel will be a passive ownership, with no Board representation or other governance or information rights,” Intel said in its statement about the deal. “The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions.”