Trump announces U.S. stake in Intel

President Trump announced Friday that the government had reached a deal to secure a 10% stake in technology company Intel.

“The United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future,” Mr. Trump wrote on Truth Social Friday.

He said he negotiated the deal with Intel CEO Lip-Bu Tan.

“The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation.”

He said earlier in the Oval Office that he told Mr. Tan that he thought it would be good for the company to have the U.S. as a partner. Mr. Trump met with him at the White House earlier this month after calling for Mr. Tan to resign over his alleged ties to the Chinese Communist Party.

Details posted by Intel said the U.S. will make an $8.9 billion investment in Intel common stock. The equity stake would be funded by the $5.7 billion in CHIPS and Science Act grants that had been awarded but not yet paid to Intel and by $3.2 billion awarded to the company from the Secure Enclave program.

“The government’s investment in Intel will be a passive ownership, with no Board representation or other governance or information rights,” the release said. “The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions.”

The government is getting 433.3 million shares at a price of $20.27 per share, which Intel says is equivalent to a 9.9% stake in the company.

This investment provides American taxpayers with a discount to the current market price while enabling the U.S. and existing shareholders to benefit from Intel’s long-term business success,” the release said.

“We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership,” Mr. Tan said in a statement.