Intel confirms agreement to cede 10% of its shares to the U.S. government

Semiconductor manufacturer Intel has agreed to cede 10% of its shares to the United States government, both the chip specialist and President Donald Trump announced on Friday.

"I said, 'I think you should pay us 10% of your company,'" Trump told reporters about a meeting he had last week with Intel CEO Lip-Bu Tan.

"I said, 'I think it would be good to have the United States as your partner,' (...) they've agreed to do that, and I think it's a great deal for them," the president added.

The U.S. government intended to obtain shares in the company in exchange for subsidies already planned by former President Joe Biden, Commerce Secretary Howard Lutnick clarified last week.

Under the agreement, the government will receive 433.3 million common shares, representing a 9.9% stake in the company, Intel said in a statement.

This represents an $8.9 billion investment, funded in part by $5.7 billion in grants awarded but not yet paid under the CHIPS Act .

The CHIPS Act, passed during Biden's administration , is intended to foster the establishment of the entire chip and semiconductor value chain in the country.

The other $3.2 billion comes from a grant awarded to the company as part of the Secure Enclave program, Intel said.

The $8.9 billion investment would be added to the $2.2 billion in CHIPS grants Intel has already received, bringing the total to $11.1 billion, the company added.

"The United States of America now owns and controls 10% of INTEL ," Trump wrote on his Truth Social platform.

He claimed that the country "paid nothing for these shares" after negotiations with Lip-Bu Tan.

In a statement, the company said that the "government's investment in Intel will be passive ownership, with no board representation or other governance or information rights."

Intel is one of Silicon Valley's most iconic companies, but its success has been overshadowed by Asian giants TSMC and Samsung, which dominate the semiconductor market.

In early August, Trump attacked Lip-Bu Tan, accusing him of "facing a serious conflict of interest" and demanding his "immediate resignation."

He subsequently received him at the White House on August 11, in a meeting that the US president described as "very interesting."

Japanese technology investment giant SoftBank Group also announced last week its intention to invest $2 billion in Intel, which would increase its stake to 2%.

The Republican president is seeking to attract companies to his country by imposing tariffs on imported products.