US government takes 9.9% stake in Intel
It's official, Intel and the US government have reached an agreement that makes the federal government a shareholder in the semiconductor company. The government will invest USD 8.9 billion in Intel, acquiring a 9.9% stake.
The funding comes partly from USD 5.7 billion in previously awarded, but unpaid, grants under the CHIPS and Science Act, and partly from USD 3.2 billion tied to the Secure Enclave program, which aims to support secure domestic semiconductor production for the Department of Defence.
The government will purchase 433.3 million Intel shares at USD 20.47 each, below the current market price. The ownership will be passive, with no board representation or special governance or information rights. The government will generally vote in line with Intel’s board on matters requiring shareholder approval, according to a press release.
The agreement also gives the government a five-year option to buy an additional 5% of Intel shares at USD 20 each, exercisable only if Intel’s ownership of its foundry business falls below 51%. Existing profit-sharing and clawback provisions tied to earlier CHIPS grants will be removed.
Intel said the investment supports its large-scale US expansion, which includes more than USD 100 billion in new facilities such as its Arizona site, where high-volume production is expected to begin later this year.
President Donald Trump commented on the deal on Truth Social, calling it a great deal for both America and Intel, and emphasising the importance of semiconductor manufacturing for the nation’s future.
