US authorities invests $8.9 billion in Intel, takes 10% stake

The US authorities is making an $8.9 billion funding in Intel, securing a ten% stake within the embattled chipmaker. President Donald Trump confirmed the deal, which he stated was negotiated immediately with Intel CEO Lip-Bu Tan.

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While framed as a brand new funding, a lot of the funds have been already slated to go to Intel. The deal is being funded by the remaining $5.7 billion in grants from the CHIPS Act, together with $3.2 billion from the Secure Enclave program. Intel has already obtained $2.2 billion from the CHIPS Act.

This transfer is the newest in a sequence of actions that mix authorities and company pursuits. President Trump, who had just lately referred to as for Tan’s resignation over his ties to China, acknowledged that he positioned the deal as a approach for the CEO to “keep his job.” According to Intel, the federal government’s 10% stake can be a “passive ownership,” with no board illustration or governance rights.

The information comes simply days after SoftBank introduced a separate $2 billion funding to increase Intel’s chipmaking within the U.S. This deal additionally follows current stories that the Trump administration has demanded that Nvidia and AMD give the federal government a 15% reduce of their superior chip gross sales to China.

Treasury Secretary Scott Bessent had hinted on the deal earlier, calling it a “conversion of grants” meant to “stabilize the company for chip production here in the US.” President Trump indicated that he plans to pursue comparable offers sooner or later.