Intel and Trump Administration Announce Landmark Investment Deal to Strengthen U.S. Technology and Manufacturing Leadership
Intel Corporation has entered into a historic agreement with the Trump Administration aimed at bolstering America’s semiconductor industry and reinforcing the nation’s global technology leadership. Under the terms of the agreement, the U.S. government will invest $8.9 billion in Intel common stock, underscoring Washington’s confidence in Intel’s role as a cornerstone of America’s economic, technological, and national security future.
This move marks one of the largest direct federal equity investments in a U.S. technology company, representing a milestone in the ongoing effort to expand domestic semiconductor production and reduce reliance on foreign supply chains. The agreement reflects the government’s growing recognition of semiconductors as critical infrastructure for innovation in artificial intelligence, defense, and digital transformation.
Details of the Investment
The investment will be funded by reallocating $5.7 billion in CHIPS and Science Act grants that had previously been awarded but not disbursed, along with $3.2 billion from the Secure Enclave program, which supports trusted chip development for the U.S. Department of Defense. Intel has already received $2.2 billion in CHIPS Act grants, bringing the government’s total investment in the company to $11.1 billion.
As part of the agreement, the U.S. government will acquire 433.3 million Intel shares at a price of $20.47 per share, representing a 9.9 percent equity stake. Notably, this purchase is being made at a discount compared to Intel’s current market price, giving taxpayers the potential to benefit from the company’s long-term success.
The government’s role will remain strictly passive. It will not appoint representatives to Intel’s Board of Directors nor seek access to sensitive company information. In addition, the U.S. has committed to voting in alignment with Intel’s Board on shareholder matters, with only narrow exceptions.
A further provision of the agreement grants the government a five-year warrant at $20 per share for an additional 5 percent stake in the company, exercisable only if Intel’s ownership in its foundry business falls below 51 percent.
The deal also eliminates claw-back and profit-sharing clauses tied to previous CHIPS Act funding, giving Intel greater financial stability and flexibility as it advances its U.S. expansion strategy.
Commitment to U.S. Manufacturing
Intel has long been a champion of American semiconductor leadership. Since its founding in 1968, the company has invested heavily in domestic manufacturing and R&D. Over the past five years alone, Intel has spent $108 billion in capital investments and $79 billion in R&D, with the majority directed toward strengthening U.S.-based operations.
Currently, Intel is executing one of the most ambitious expansions of semiconductor manufacturing in U.S. history, with plans to invest over $100 billion in new facilities. Its flagship project is the new Arizona fabrication site, which is scheduled to begin high-volume chip production later this year. This site will feature the most advanced manufacturing process technology currently available in the United States.
Intel’s CEO, Lip-Bu Tan, emphasized the importance of this partnership, stating:
“As the only semiconductor company that conducts leading-edge R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American-made. President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel.”
Voices of Support from Industry Leaders
The agreement has drawn broad support from leading figures in the technology sector who view the partnership as vital to America’s long-term competitiveness.
- Howard Lutnick, U.S. Secretary of Commerce, welcomed the deal, saying: “Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world. This administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening national security.”
- Satya Nadella, CEO of Microsoft, noted the enduring collaboration between the two companies: “The decades-long partnership between Microsoft and Intel has pioneered new frontiers of technology. Intel’s commitment to strengthening the U.S. semiconductor supply chain, supported by President Trump’s bold strategy, will benefit the technology ecosystem for years to come.”
- Michael Dell, CEO of Dell Technologies, highlighted Intel’s role in resilience: “The industry needs a strong and resilient U.S. semiconductor industry, and no company is more important to this mission than Intel. We fully support these shared priorities.”
- Enrique Lores, CEO of HP, underscored the strategic importance of the deal: “This is a defining moment for great American companies to lead the world in cutting-edge technologies that will shape the future.”
- Matt Garman, CEO of AWS, linked the investment to AI and cloud development: “Leading-edge semiconductors are the bedrock of every AI technology and cloud platform. Intel plays a vital role as one of the country’s leading chip manufacturers, and we applaud the administration’s efforts to usher in a new era of American innovation.”
