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4d ago

U.S. Buys Nearly 10% Stake in Intel in $8.9 Billion Equity Deal

The purchase converts previously allocated CHIPS and Secure Enclave funds into equity, making Washington a passive shareholder.

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Overview

  • Intel said the government bought 433.3 million common shares for $8.9 billion at $20.47 each, equal to a 9.9% stake.
  • Funding includes $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from the Defense Department’s Secure Enclave program, on top of $2.2 billion already received.
  • The government will have no board seat or special information rights and has agreed to vote with Intel’s board on most shareholder matters with limited exceptions.
  • Commerce Secretary Howard Lutnick publicly confirmed the stake after President Trump pressed CEO Lip‑Bu Tan in an early‑August meeting; Intel shares closed up about 5.5% Friday.
  • Analysts and some lawmakers, including Sen. Rand Paul, criticized the move as government overreach, and Democrats introduced legislation to limit executive authority over similar interventions.