Overview

• Washington bought 433.3 million Intel shares at $20.47 each for about $8.9 billion, with no board seat, limited voting rights aligned with the board, and a five-year warrant to buy an extra 5% if Intel no longer controls its foundry unit.
• The equity was funded by converting previously pledged subsidies — $5.7 billion from the CHIPS and Science Act and $3.2 billion from the Secure Enclave program — making the government Intel’s largest single shareholder.
• President Trump said taxpayers “paid zero” and vowed to pursue similar deals, while National Economic Council Director Kevin Hassett described the move as groundwork for potential future stakes and a possible sovereign wealth fund.
• Legal scholars are questioning whether the CHIPS Act permits converting grant commitments into equity, and reactions split politicians and commentators, with Republicans like Rand Paul and Thom Tillis criticizing the move and Bernie Sanders backing taxpayer upside.
• Intel, which has posted steep manufacturing losses and delayed U.S. projects, disclosed in a new filing that the arrangement could constrain future grants, complicate international sales, and increase regulatory exposure, even as its stock ticked higher after the announcement.