U.S. government will take a 10% stake in Intel
The U.S. government is set to acquire a 10% ownership stake in Intel, President Donald Trump told reporters on Friday, in a move that would mark a rare departure from traditional American economic policy. The announcement, first reported by Bloomberg, sent Intel’s stock soaring more than 7% during afternoon trading.
Trump said Intel had agreed to the proposal, though the company declined to comment.
A Pivotal Moment for Intel
The deal comes at a critical juncture for the semiconductor giant. CEO Lip-Bu Tan is in the midst of an aggressive restructuring campaign, shutting down non-core divisions and implementing layoffs in an effort to streamline operations and reclaim ground lost to competitors such as Nvidia.
Tensions between the White House and Intel’s leadership have been high in recent weeks. Earlier this month, Trump pressed Tan to resign, citing potential conflicts of interest. Although Tan ultimately remained in his position, he held direct talks with the president to explore ways the company could work more closely with Washington.
A Rare Move in U.S. Policy
Government equity stakes in private corporations are extremely unusual in the United States. The most notable exceptions occurred during the 2008–2009 financial crisis, when the federal government temporarily took ownership stakes in firms such as General Motors, AIG, and several major banks to stabilize the economy. Those holdings were later sold back to private investors.
If completed, the Intel deal would mark one of the most significant government interventions in U.S. industry since that crisis.
International Investment Also Rising
The development comes just days after Japan’s SoftBank agreed to invest $2 billion in Intel, purchasing common stock at $23 per share as part of a broader pledge to support American semiconductor innovation. Intel shares were trading around $25 on Friday afternoon.
Together, the government’s stake and SoftBank’s investment could provide Intel with a powerful financial and political boost as it seeks to navigate a rapidly evolving semiconductor landscape, marked by intensifying global competition and surging demand for advanced chips.
