Trump Secures 10% in Intel – A Game Changer?

The government’s 10% stake in Intel could reshape American tech policy, igniting debate over state intervention in private industry.

Story Highlights

The U.S. government has acquired a 10% equity stake in Intel through CHIPS Act funds.
This marks the first time the government has taken a significant equity position in a major tech firm.
The stake is non-voting, meaning the government has no board representation.
The deal aims to boost domestic semiconductor production amidst global supply chain concerns.
Intel is undergoing significant restructuring, including layoffs of over 20,000 employees.

Government Secures Stake in Intel

On August 23, 2025, President Donald Trump and Commerce Secretary Howard Lutnick announced that the U.S. government had secured a 10% equity stake in Intel. This unprecedented move was part of a deal converting $11.1 billion in CHIPS Act grants into equity, positioning the government as one of Intel’s largest shareholders. Despite its size, the stake is non-voting, ensuring no direct governance over Intel’s operations.

The acquisition comes at a critical time for Intel, which has been facing manufacturing delays and competitive pressures from Asian semiconductor firms. The CHIPS and Science Act, passed in 2022, was designed to revitalize U.S. semiconductor manufacturing, and Intel emerged as a primary beneficiary of these grants. The government’s involvement aims to secure the domestic production of semiconductors vital for national security.

Implications of the Equity Stake

While the government’s stake is non-voting, its size makes it a significant shareholder, potentially influencing future policy. This move sets a precedent for blending public funding with partial public ownership in strategic industries. The government’s financial interest in Intel could shape future decisions regarding domestic semiconductor production and national security priorities.

The deal also aligns with the Trump administration’s “America First” policy, focusing on economic competitiveness and technological sovereignty. However, it raises questions about the role of government in private industry. Critics warn of potential market distortion and the implications of government ownership in tech companies.

Industry and Economic Impact

The acquisition has immediate and long-term impacts. In the short term, it stabilizes Intel’s finances and boosts U.S. semiconductor manufacturing capacity. In the long run, it could influence global investment patterns in the semiconductor industry and prompt other tech companies to consider similar arrangements. The deal has sparked debate over industrial policy and government ownership in critical sectors.

Intel’s restructuring, which includes laying off over 20,000 employees, adds a layer of complexity to the situation. While job losses are a concern, the potential for long-term industry growth and strengthened domestic supply chains could offset these challenges. The deal’s impact on Intel’s global competitiveness and investor perceptions remains to be seen.