U.S. Takes 10% Stake in Intel
By Tae Kim
Updated Aug 22, 2025, 5:18 pm EDT / Original Aug 22, 2025, 2:50 pm EDT
 President Donald Trump (Photo by Andrew Harnik/Getty Images)
The U.S. government is now the largest single investor in Intel On Friday, Intel announced an agreement for the U.S. government to make an $8.9 billion investment in Intel shares at $20.47 per share, which equals a 9.9% stake in Intel. The stake will be funded by the $5.7 billion in unpaid Chips Act grants and the $3.2 billion award from the Secure Enclave national security program.
“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,” Intel CEO Lip-Bu Tan said in the release.
The company said the government’s investment in Intel will be passive, with no representation on the board of directors or information rights. The government will also receive a five-year warrant at $20 per share for another 5% of Intel that is exercisable only if Intel owns less than 51% of its foundry unit at some point in the future.
“This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge,” Commerce Secretary Howard Lutnick said on social media
Prior to the announcement, Vanguard was the largest holder of Intel stock at 8.4%, according to FactSet.
Earlier on Friday, President Donald Trump said Intel agreed to give a 10% equity stake in the company to the government. “They’ve agreed to do it and I think it’s a great deal for them,” Trump said at the White House, referring to Intel.
Intel stock closed up 5.5% at $24.80 on Friday after Trump’s remarks. Shares were down 1% in after-hours trading.
Earlier this week, Intel announced a $2 billion investment from Japan’s Softbank. The announcement of the SoftBank investment came after reports that Intel is talking to the Trump administration about the government taking a stake in the company.
Write to Tae Kim at tae.kim@barrons.com
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