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Title: The US government is taking a 10 percent stake in Intel

Date: Fri, 22 Aug 2025 20:50:47 +0000
Link: https://www.engadget.com/big-tech/the-us-gove...

President Donald Trump says the US government is taking a 10 percent stake in
chip maker Intel. Trump shared the news during a press conference on Friday,
though an official announcement is still forthcoming, Reuters reports. News
of a plan to convert Intel's previously promised CHIPS Act funding into
equity in the company was first reported earlier in August.

A meeting between Intel CEO Lip-Bu Tan and Trump following the President's
call for Tan to resign seems to be the source of the deal. "He walked in
wanting to keep his job and he ended up giving us 10 billion dollars for the
United States. So we picked up 10 billion," Trump shared during the press
conference.

Based on Intel's current share price, a 10 percent stake would be worth
around $10 billion, Reuters says. It's important to note that the government
investing in Intel is not the same thing as receiving free money, it's the
exact opposite. The government's stake in Intel will also be non-voting,
according to earlier comments from US Commerce Secretary Howard Lutnick.

Intel was supposed to receive up to $10.86 billion in federal funding to
expand its chip manufacturing business in the US as part of the CHIPS Act. By
agreeing to this deal, Tan is likely trying to make sure that funding still
goes through, one of several drastic moves to keep Intel afloat. Tan assumed
the title of CEO following Pat Gelsinger's sudden retirement in 2024. Since
taking over, he's already committed to cutting Intel's workforce by 20
percent. Even with lower costs and guaranteed investment, the company's
future is still uncertain: Intel is reportedly struggling to make its next-
gen Panther Lake chips at scale.

The Trump administration says it won't seek similar equity deals with other
recipients of CHIPS Act funding. That hasn't stopped them from making other
equally unprecedented financial arrangements. NVIDIA and AMD reportedly
struck a deal with the US government that gives the companies the ability to
export products to China in exchange for 15 percent of their profits.

This article originally appeared on Engadget at https://www.engadget.com/big-
tech/the-us-government-is-taking-a-10-percent-stake-in-intel-
205047622.html?src=rss

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