‎U.S. Government Gains $1.9 Billion on Trump's Intel Deal with 10% Stake

‎President Donald Trump has announced that the United States government has acquired a 10% stake in Intel, a landmark agreement that has already generated a paper gain of $1.9 billion. The deal comes through the conversion of $11.1 billion in previously pledged funds and grants, securing 433.3 million shares of Intel at $20.47 each, below Friday’s market price of $24.80.

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‎Trump confirms the U.S. now holds a 10% stake in Intel, valued at $11.1B. The deal gives the government a $1.9B paper gain as chipmaking shifts back to America.

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‎This makes the U.S. government one of Intel’s largest shareholders at a pivotal time for the California-based chipmaker, which is restructuring its operations and laying off more than 20,000 employees. Intel’s market value stands at $108 billion, a fraction of Nvidia’s $4.3 trillion valuation, underscoring the company’s efforts to regain lost ground in the semiconductor sector.

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‎Intel CEO Lip-Bu Tan, who assumed leadership five months ago, faced scrutiny over past investments in Chinese firms before reaffirming his commitment to U.S. interests. Following his meeting with Trump, both sides finalized the government’s stake, with Trump praising Tan as a “highly respected” leader. Tan responded by pledging to strengthen U.S. chip manufacturing and innovation.

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‎The funding originated from programs tied to the CHIPS and Science Act, introduced under President Joe Biden to reduce reliance on overseas chip production. Trump’s administration, which had criticized the initiative, is now seeking to turn it into a profitable investment. According to Commerce Secretary Howard Lutnick, the move ensures that “America should get the benefit of the bargain.”

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‎The U.S. government’s Intel stake has raised questions about the role of public investment in private industry. Critics warn of potential risks, including market distortions, political influence over business operations, and pressure on other tech companies to align with administration preferences. Investor Nancy Tengler voiced concerns that government involvement may hinder industry independence.

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‎Historical precedent shows this type of intervention is rare but not without parallels. During the 2008 financial crisis, the government acquired a 60% stake in General Motors, ultimately incurring a $10 billion loss after exiting the investment.

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‎Trump’s decision aligns with his broader strategy of reshoring semiconductor production and reducing U.S. dependence on Chinese manufacturing. Alongside the Intel stake, his administration has imposed new export conditions on companies such as Nvidia and Advanced Micro Devices, requiring a 15% commission on chip sales to China.