US Government Acquires 10% Stake in Intel in Exchange for CHIPS Funding Act

Intel, one of America’s top technology companies, has agreed to give the US government a 10% ownership stake. The announcement was made on August 23, 2025, by both Intel and President Donald Trump. This deal follows months of talks over federal funding originally granted under President Joe Biden’s CHIPS and Science Act.

How Was the Deal Made?

The US will receive 433.3 million Intel shares, equal to a 9.9% stake, valued at around US$8.9 billion. This is not entirely new money since US$5.7 billion of that amount was from CHIPS Act grants already promised but not yet paid. The remaining US$3.2 billion comes from the Secure Enclave program. Intel has also previously received US$2.2 billion from CHIPS grants, bringing total government support to US$11.1 billion.

What Powers Does the US Government Have in Intel?

President Trump called the deal a “great win” for the US. He posted on Truth Social that the country now “fully owns and controls 10% of Intel” and claimed the government "paid nothing" for the shares after tough negotiations with Intel CEO Lip-Bu Tan.

Despite Trump’s strong wording, Intel clarified that the US government will have a passive stake. This means that it will not get any board seats or decision-making power.

Intel Pushes Forward

CEO Lip-Bu Tan said Intel remains committed to keeping top technology production in the US. The company is investing over US$100 billion to expand its US operations.

Read more: India’s Crude Import Bill Falls 18% in April–July, But Risks Ahead with US Tariffs.

Conclusion

The US government now holds a large piece of one of the country’s biggest tech firms. Supporters see it as a smart use of federal funds to boost US chipmaking. But news reports suggest it could open the door to more government control of private businesses. As Intel pushes ahead with massive US investments, all eyes will be on how this new partnership plays out.

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