August 22, 2025 — In a historic move aimed at revitalizing American semiconductor manufacturing, the U.S. government has announced a nearly $8.9 billion investment in Intel, acquiring close to a 10% equity stake in the company. The announcement, made by President Donald Trump, sent Intel shares surging more than 6% in a single day.
This bold intervention underscores the White House’s commitment to bolstering domestic chip production, ensuring national security, and reducing dependence on foreign supply chains—particularly in the wake of growing geopolitical tensions around Taiwan.
Strategic Shift: Grants Turned into Equity
The deal stems from an innovative reallocation of funds under the CHIPS and Science Act, where nearly $6 billion in previously approved but unpaid grants will now be converted into equity rather than distributed as direct subsidies.
Intel CEO Lip-Bu Tan and President Trump reached the agreement during a closed-door White House meeting earlier this month. Trump, who had previously demanded Tan’s resignation due to the CEO’s ties to Chinese tech firms, praised the CEO’s “renewed commitment to America” and called the final agreement a “fantastic win for U.S. industry.”
Intel’s Struggles Prompt Federal Lifeline
Intel has faced a difficult few years:
- $18.8 billion in losses in 2024
- Falling behind competitors like TSMC, Nvidia, and AMD
- A delayed $20 billion Ohio chip facility, now pushed to 2030
The federal stake provides a much-needed runway for Intel to retool its roadmap, expand production, and regain market share in an increasingly competitive space.
Government Promises Passive Role
Despite the size of the stake, U.S. officials have stressed that the government’s involvement will remain passive. There will be no voting rights, no board seat, and no operational control.
“We are not in the business of running tech companies,” said Commerce Secretary Howard Lutnick. “Our goal is to secure supply chains and support a vital American industry.”
SoftBank Joins In with $2B Intel Investment
Intel’s future is attracting more than just Washington’s attention. Japan’s SoftBank Group also announced a $2 billion investment for a 2% stake, signaling rising global confidence in Intel’s turnaround potential.
Why This Matters: Chips Are the Backbone of the Future
Semiconductors power everything from AI and 5G to defense systems and autonomous vehicles. With most cutting-edge chip production currently concentrated in Taiwan, this U.S. move is more than economic—it’s geopolitical.
This deal reflects the Trump administration’s aggressive stance on restoring American manufacturing dominance, and it could set a precedent for future interventions in critical technologies.
What’s Next for Intel?
With federal backing and renewed investor confidence, Intel is poised to:
- Accelerate its manufacturing expansion
- Compete more aggressively with global rivals
- Help the U.S. reclaim leadership in advanced chip technology
“This is a historic investment in America’s future,” said CEO Lip-Bu Tan. “We are proud to partner with the government to secure and advance the semiconductor industry.”