On August 22, 2025, President Donald Trump revealed that the United States government now owns nearly a 10% equity stake in Intel. The unusual move came after Washington converted previously allocated grants into non-voting shares of the semiconductor giant.
How the Deal Was Structured
The government transformed funding from programs such as the CHIPS and Science Act and the Secure Enclave initiative into Intel stock. Depending on the report, the total converted value ranges between $8.9 billion and $11.1 billion.
In exchange, Washington received roughly 433.3 million non-voting shares at $20.47 each. With Intel’s stock closing at $24.80 that same day, the government walked away with an instant paper gain of about $1.9 billion.
Although the stake is significant, it remains passive. Federal officials stressed that this ownership does not give the government direct influence over Intel’s board or day-to-day operations.
A Historic Step in Industrial Policy
This marks one of the largest direct equity positions the U.S. government has taken in a private company outside of extraordinary circumstances like wartime measures or financial bailouts. Analysts view it as a milestone in reshaping American industrial policy.
The Trump administration has already taken similar steps with other strategic firms. These include equity ties with Nvidia and AMD as well as a “golden share” arrangement with Nippon Steel’s deal for U.S. Steel. The Intel transaction signals a clear pattern of deeper government involvement in industries critical to national security and economic competitiveness.
What It Means for Intel and the Tech Sector
Intel has struggled in recent years to keep pace with competitors such as Nvidia and Taiwan’s TSMC. By gaining federal backing, the company now has an additional layer of financial and political support to rebuild its manufacturing and foundry operations.
Still, the decision has sparked criticism. Detractors warn that this level of government intervention risks politicizing the tech industry, weakening competition, and distorting natural market dynamics.
For now, the U.S. government stands as Intel’s newest shareholder, holding close to a 10% passive interest — a move that could reshape the relationship between Washington and Silicon Valley for years to come.
