lipflip –The United States government will acquire a 9.9 percent stake in Intel through an $8.9 billion share purchase. Marking its largest direct equity investment in the semiconductor industry. The move reflects a strategic bet on U.S.-based chip manufacturing as global competition intensifies in the AI and defense sectors.
The purchase includes 433.3 million newly issued Intel shares at $20.47 each, a discount to the company’s recent market value. Officials confirmed the investment will be funded through a mix of federal programs: $5.7 billion from the CHIPS and Science Act and $3.2 billion from the Pentagon-backed Secure Enclave initiative.
Secure Enclave funding supports the development of secure, tamper-resistant chips for military and critical government applications. Intel has already received $2.2 billion under previous CHIPS disbursements. Bringing total public investment linked to the company to $11.1 billion.
The government will hold the stake passively. Will not take a board seat, and will generally vote alongside Intel’s board of directors. Terms of the deal also include a five-year warrant allowing the U.S. to purchase an additional five percent of shares at $20 if Intel’s ownership in its foundry unit falls below 51 percent.
Officials will also lift claw-back and profit-sharing terms tied to earlier CHIPS funds, signaling a deeper, more collaborative relationship with Intel moving forward.
Intel Touts Investment as Endorsement of U.S. Manufacturing and National Security Goals
Intel characterized the agreement as a powerful endorsement of its domestic manufacturing strategy. CEO Lip-Bu Tan emphasized the company’s unique position as the only U.S. firm conducting both advanced logic research and chip production domestically. He described Intel as critical to ensuring the most advanced technologies remain American-made.
President Donald Trump previewed the agreement, with Commerce Secretary Howard Lutnick confirming the government’s strategic shift toward equity-based support under CHIPS. Officials clarified the move is specific to Intel and that they do not intend to pursue similar stakes in other recipients like TSMC or Micron.
Intel detailed its expanding U.S. footprint, highlighting $108 billion in capital expenditures. And $79 billion in research and development over the past five years. The company plans to invest more than $100 billion in future domestic facilities. With new fabrication plants in Arizona expected to begin high-volume production later this year.
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These fabs will use the most advanced process technologies currently deployed in the U.S.. Bolstering national supply-chain resilience and advanced computing capabilities. Key partners, including Microsoft, Dell, HP, and Amazon Web Services, publicly endorsed the strategy. Citing its importance for AI innovation and tech independence.
The investment signals Washington’s intent to secure technological leadership through targeted industrial policy. It also reflects growing urgency to reduce reliance on foreign chip suppliers amid geopolitical tensions and global supply challenges. Intel’s leadership in domestic chipmaking is now reinforced by a bold federal commitment to long-term innovation.