Former President Donald Trump said Intel has agreed to let the United States acquire nearly a 10% stake in the company. Intel Corporation (NASDAQ: INTC) shares surged on Friday after Trump announced that the chipmaker had accepted a deal for the U.S. to hold close to 10% of its equity, a move confirmed in a post-market statement that ended weeks of speculation.
Intel’s stock closed up 5.5% on the news.
“They have agreed to do that, and I think this is a great deal for them,” Trump told reporters Friday afternoon at the White House.
Under the agreement, the United States will invest $8.9 billion in Intel’s common stock. The government’s equity position will be funded with $5.7 billion from approved but unpaid grants under the CHIPS and Science Act, along with $3.2 billion from the Secure Enclave program. Intel will continue to fulfill its Secure Enclave commitments and reaffirm its pledge to provide trusted semiconductors to the U.S. Department of Defense. The $8.9 billion investment is in addition to $2.2 billion in prior CHIPS grants, bringing total federal support to $11.1 billion. In return, the United States will receive 433.3 million primary common shares of Intel at $20.47 per share, representing a 9.9% stake in the company.
“As the only semiconductor company conducting both research and development and advanced logic manufacturing in the United States, Intel is deeply committed to ensuring that the world’s most advanced technologies are made in America,” said Intel CEO Lip-Bu Tan.
“This is a Great Deal for America and also a Great Deal for INTEL,” Trump wrote on Truth Social after the agreement was formally announced.