David Awoyode
President Donald Trump on Friday said that Intel has agreed to a $10 billion deal with the US government, a move that could see Washington take a roughly 10% equity stake in the company.
Intel Declines to Confirm
Despite Trump’s remarks, Intel has not confirmed the deal. The company declined to comment, and the White House did not immediately respond to requests for clarification.
Market Reaction
Intel’s stock surged more than 6% following Trump’s statement, reflecting investor optimism despite uncertainty around the official details.
Background of the Talks
Trump previously met with Intel CEO Lip-Bu Tan, initially calling for his resignation over alleged Chinese investments. After their White House meeting, Trump praised the executive and claimed they reached an agreement that benefits both parties.
Trump’s Version of the Deal
“I think the United States should be given 10% of Intel,” Trump said, recounting his conversation with Tan. According to Trump, the CEO agreed, leading to what he called a “great deal” for both Intel and the US government.
Possible Conversion of Chips Act Funds
Reports suggest officials had considered converting the $11 billion Intel was expected to receive under the Biden-era Chips and Science Act into an equity stake. Trump has criticized the law but supports efforts to expand US semiconductor production.
Significance of the Investment
If confirmed, the investment would make the US government one of Intel’s largest shareholders. The deal could strengthen America’s semiconductor industry, which faces growing competition from Taiwan Semiconductor Manufacturing Company (TSMC) and other global rivals.
National Security and Jobs
Trump’s AI Action Plan, published last month, emphasized that a revitalized US chip sector would create thousands of high-paying jobs, bolster technological leadership, and secure supply chains against foreign disruptions.
Wider Trend of Government Stakes
The potential Intel deal highlights a shift toward stronger government involvement in strategic industries. Similar steps include the Pentagon’s recent $400 million equity stake in MP Materials Corp and the government’s “golden share” in US Steel Corp.
