Trump Secures 10% U.S. Stake in Intel to Boost Chipmaking

President Donald Trump struck a landmark deal giving the U.S. government a 9.9% stake in Intel Corp., part of an $8.9 billion investment aimed at reviving the struggling chipmaker and strengthening domestic semiconductor production.

The funding comes from the Chips and Science Act and Secure Enclave program, bringing total federal support for Intel to $11.1 billion. The government will remain a passive investor with no board seat or governance rights.

Intel shares rose 5.5% to $24.80 in New York trading Friday. Trump hailed the agreement as a “great deal for America,” framing it as a matter of national security after recent chip shortages rattled supply chains.

The unprecedented move underscores Trump’s push for direct taxpayer returns on federal subsidies. Analysts say the cash infusion could help Intel expand U.S. manufacturing, but warn that funding alone won’t fix the company’s lag behind rivals like TSMC.