Semiconductor giant Intel received an added vote of confidence from the Trump Administration. The U.S. government is deepening its investment in the company, committing to an $8.9 billion stock purchase. It agreed to purchase 433.3 million primary shares of Intel common stock at a price of $20.47 per share, allotting it a 9.9 percent stake in the company. The finalized agreement comes just weeks after President Donald Trump demanded the resignation of Intel CEO Lip-Bu Tan, but then changed course after meeting with Tan.
The government’s equity stake will come from the remaining $5.7 billion in grants the administration has yet to pay Intel under the U.S. CHIPS and Science Act as well as $3.2 billion awarded to the company as part of the Secure Enclave program. The agreement adds to the $2.2 billion in CHIPS grants Intel already received, bringing the company’s total government-backed investments to $11.1 billion.
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” Tan said in a statement. “We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”
The investment aims to support a resilient domestic semiconductor supply chain and help revive U.S.-based tech manufacturing. Following this agreement, the investment makes the U.S. government Intel’s largest shareholder, according to reporting by The Wall Street Journal. SoftBank Group also recently agreed to back the company, putting forth $2 billion into Intel in accordance with its $100 billion pledge in U.S. AI tech investments, the WSJ article mentioned.
