{"id":5525,"date":"2025-08-23T00:22:05","date_gmt":"2025-08-23T00:22:05","guid":{"rendered":"https:\/\/jobuzo.com\/en\/the-us-government-is-taking-an-8-9-billion-stake-in-intel\/"},"modified":"2025-08-23T00:22:05","modified_gmt":"2025-08-23T00:22:05","slug":"the-us-government-is-taking-an-8-9-billion-stake-in-intel","status":"publish","type":"post","link":"https:\/\/jobuzo.com\/en\/the-us-government-is-taking-an-8-9-billion-stake-in-intel\/","title":{"rendered":"The US government is taking an $8.9 billion stake in Intel"},"content":{"rendered":"<div>\n<div><\/div>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 engadget-charcoal\">President Donald Trump says the US government is taking a 10 percent stake in chip maker Intel. Trump shared the news during a press conference on Friday, though an official announcement is still forthcoming, <em>Reuters <\/em>reports. News of a plan to convert Intel&rsquo;s previously promised CHIPS Act funding into equity in the company was first reported earlier in August.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 engadget-charcoal\">A meeting between Intel CEO Lip-Bu Tan and Trump following the President&rsquo;s call for Tan to resign seems to be the source of the deal. &ldquo;He walked in wanting to keep his job and he ended up giving us 10 billion dollars for the United States. So we picked up 10 billion,&rdquo; Trump shared during the press conference.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 engadget-charcoal\">Intel later announced more details on the investment. The company said in a press release that the government will &ldquo;make an $8.9 billion investment in Intel common stock.&rdquo; It adds that the equity stake will be funded by $5.7 billion previously earmarked for Intel as part of the CHIPS act, and $3.2 billion awarded as part of the Secure Enclave program. Intel had previously recieved $2.2 billion in CHIPS grants, bringing the government&rsquo;s total spend on the chipmaker to $11.1 billion. The government paid $20.47 per share, so the $8.9 billion investment is equivalent to a 9.9 percent stake in the company.<\/p>\n<div class=\"col-fullbleed mb-4 bg-marshmallow pb-5 dark:bg-ramones md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<p>Advertisement<\/p>\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R5bljlr4kutrilbH1_\">\n<p>Advertisement<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"col-body mb-4 hidden pb-5 dark:bg-ramones md:block\">\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R9bljlr4kutrilbH1_\">\n<p>Advertisement<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"internal-linking-related-contents\"><a href=\"https:\/\/jobuzo.com\/en\/12-weeks-jail-for-school-it-support-technician-who-took-upskirt-videos-of-teachers\/\" class=\"template-1\"><span class=\"cta\">News :<\/span><span class=\"postTitle\">&lt;div&gt;12 weeks' jail for school IT support technician who took upskirt videos of teachers&lt;\/div&gt;<\/span><\/a><\/div><p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 engadget-charcoal\">It&rsquo;s important to note that the government investing in Intel is not the same thing as receiving free money, it&rsquo;s the exact opposite. Despite earlier comments from US Commerce Secretary Howard Lutnick suggesting the stake would be non-voting, common stock does come with voting rights. Intel does note that the investment will be passive, with no board representation, and that the government has agreed to vote with its board of directors &ldquo;on matters requiring shareholder approval, with limited exceptions.&rdquo;<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 engadget-charcoal\">Intel was supposed to receive up to $10.86 billion in federal funding to expand its chip manufacturing business in the US as part of the CHIPS Act. By agreeing to this deal, Tan is likely trying to make sure that funding still goes through, one of several drastic moves to keep Intel afloat. Tan assumed the title of CEO following Pat Gelsinger&rsquo;s sudden retirement in 2024. Since taking over, he&rsquo;s already committed to cutting Intel&rsquo;s workforce by 20 percent. Even with lower costs and guaranteed investment, the company&rsquo;s future is still uncertain: Intel is reportedly struggling to make its next-gen Panther Lake chips at scale.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 engadget-charcoal\">The Trump administration says it won&rsquo;t seek similar equity deals with other recipients of CHIPS act funding. That hasn&rsquo;t stopped them from making other equally unprecedented financial arrangements. NVIDIA and AMD reportedly struck a deal with the US government that gives the companies the ability to export products to China in exchange for 15 percent of their profits.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 engadget-charcoal\"><strong>Update, August 22, 6:20PM ET: <\/strong>This story was updated after publish with more information on the deal from Intel, and the headline was changed to the dollar figure, rather than the previously stated &ldquo;10 percent&rdquo; amount. A section quoting US Commerce Secretary Howard Lutnick saying that the stake was non-voting was also ammended to reflect the final details of the deal.<\/p>\n<\/div>\n<p><sub>The US government is taking an $8.9 billion stake in Intel<\/sub><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Donald Trump says the US government is taking a 10 percent stake in chip maker Intel. Trump shared the news during a press conference on Friday, though an official announcement is still forthcoming, Reuters reports. News of a plan to convert Intel&rsquo;s previously promised CHIPS Act funding into equity in the company was first&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/jobuzo.com\/en\/the-us-government-is-taking-an-8-9-billion-stake-in-intel\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;The US government is taking an $8.9 billion stake in Intel&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":5526,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/5525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/comments?post=5525"}],"version-history":[{"count":0,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/5525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media\/5526"}],"wp:attachment":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media?parent=5525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/categories?post=5525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/tags?post=5525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}