The US government has officially acquired a 10 percent stake in Intel in what appears to be an attempt to save the chipmaker, Commerce Secretary Howard Lutnick revealed in an article in X on Friday.
Intel has confirmed it Agree with the Trump administration A press release issued late Friday said this “reflects the government’s confidence in Intel to advance key national priorities and the critical role the company plays in expanding the nation’s semiconductor industry.”
The United States government is covered by the agreement. Provision of 8.9 billion dollars Buy Intel stock, which would give the government a 9.9% stake in the company. This is in addition to the $2.2 billion grant Intel has already received from the United States as part of the CHIPS Act, which was signed into law by former President Joe Biden in 2022.
“President Trump’s focus on American chip manufacturing is fueling historic investment in an industry that is vital and essential to the nation’s economic and national security,” said Intel CEO Lip-Bu Tan.
This move shows the incredible importance of semiconductors as economic growth increasingly depends on chips that power generating artificial intelligence. The boom in data centers due to the rapid rise of artificial intelligence presents a number of major obstacles, perhaps the most important of which is the availability of key chips. These data centers are also heavily dependent on access to sometimes scarce energy sources, water and land. The US also faces stiff competition from China for tools to develop more advanced AI models, including semiconductors.
Lutnick said in the press release that the Trump administration “remains committed to strengthening our nation’s dominance in artificial intelligence while strengthening our national security.”
In comments on the CNBC program he shouts in the streetLutnick justified the move by saying that American taxpayers would benefit most from investments under the CHIPS Act, a law aimed at increasing domestic chip production.
“We need to capitalize on our equity investment,” Lutnick said.
BIG NEWS: The US now owns 10% of Intel, one of our major US tech companies.
This historic agreement strengthens America’s leadership in the semiconductor industry, which will help grow our economy and ensure America’s technological edge.
Thanks to Intel… pic.twitter.com/AYMuX14Rgi
— Howard Lutnick (@howardlutnick) August 22, 2025
However, the government will not have a seat on Intel’s board.
CEOs from Microsoft, Dell, HP and AWS commented on the investment, each citing the importance of the US semiconductor industry.
“Advanced semiconductors are the foundation of all AI technologies and cloud platforms, making U.S. investment in this critical sector one of the most important technological, economic and national security imperatives of our time,” said Matt Garman, CEO of AWS. “Intel plays a critical role as one of the nation’s leading chipmakers.”
Neither the Commerce Department nor Intel immediately responded to requests for comment.
This move represents a major shift in US trade policy, but it is unprecedented. Normally, the federal government only enters the private market in certain emergencies. For example, during the 2008 financial crisis, the government intervened 60% of the shares in General Motors and took Shares in major banks. to help the financial system.
Intel’s involvement is unusual because the United States is not currently helping to raise resources for a major war and the country is not experiencing a financial crisis. What is happening now, however, is that global competition in chip manufacturing and artificial intelligence is increasing.
Microprocessors are the brains behind virtually every electronic device on the market. Advanced chips are also needed to power next-generation artificial intelligence systems. Intel, once a famous American chipmaker, as the Taiwan Semiconductor Manufacturing Company, is struggling to establish itself in a competitive market. Come out with advanced manufacturing.
When it comes to chip design, Nvidia and AMD have led the way in innovation in the US, effectively driving global artificial intelligence, cloud and computing systems. Intel made some Bad design decisions and risky ventures. In the end it didn’t pay off. For this reason, electronics manufacturers turn to other companies and other projects to market their products.
