Commerce Secretary Howard Lutnick said on Friday that the U.S. government has taken a 10% stake in embattled chipmaker Intel, the Trump administration’s latest effort to exert control over corporate America.
Intel shares rose about 6% during trading on Friday. They were flat in extended trading.
Intel, the only American company capable of making advanced chips on U.S. soil, said in a press release that the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company. Intel noted that the price the government paid was a discount to the current market price.
Of the total, $5.7 billion of the government funds will come from grants under the CHIPS Act that had been awarded but not paid, and $3.2 billion will come from separate government awards under a program to make secure chips.
“The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars,” President Trump wrote in a post on Truth Social. “This is a great Deal for America and, also, a great Deal for INTEL.”
The government will also have a warrant to buy an additional 5% of Intel shares if the company is no longer majority owner of its foundry business.
