Intel announced an agreement with President Trump’s administration on Friday, after Trump stated the government would take a 10% stake in the company. Intel mentioned the government is making an “$8.9 billion investment in Intel common stock,” using grants previously awarded but unpaid. The $8.9 billion consists of $5.7 billion from the Biden administration’s CHIPS Act and $3.2 billion from the Secure Enclave program. On Truth Social, Trump claimed, “The United States paid nothing for these shares,” calling it a beneficial deal for both the U.S. and Intel. Despite criticizing the CHIPS Act, Trump praised Intel’s CEO Lip-Bu Tan for negotiating this deal. The New York Times reported potential legal challenges, questioning the CHIPS Act’s allowance for converting grants to equity. Earlier criticisms by Trump of Lip-Bu Tan included calling for his resignation. Tan expressed gratitude for the government’s confidence in Intel, promising to enhance U.S. technology and manufacturing leadership. Intel stated the investment would be passive, with no board seats or governance rights.
