Trump Announces US Ownership of 10% of Intel Stock, Promises Tariff Investigation on Furniture Imports

President Trump announced that the US now fully owns and controls 10% of Intel, with a deal negotiated by CEO Lip-Bu Tan. The US paid nothing for the shares, valued at approximately $11 billion. Trump also mentioned similar deals and the investigation of major tariffs on furniture coming into the US, which may impact retailers such as Arhaus, Ethan Allen, RH, Wayfair, Williams-Sonoma, Target, Walmart, and Amazon.

The U.S. government has taken a 10% stake in Intel, valued at approximately $11 billion, as part of a strategic agreement to bolster the domestic semiconductor industry. This move, announced by President Trump, is aimed at strengthening American technology and manufacturing leadership. The agreement was negotiated by Intel CEO Lip-Bu Tan and involves the government purchasing 433.3 million shares of Intel common stock at a price of $20.47 per share, equivalent to a 9.9% stake in the company [1].

Under the terms of the agreement, the government's equity stake will be funded by the remaining $5.7 billion in grants previously awarded to Intel under the U.S. CHIPS and Science Act and $3.2 billion from the Secure Enclave program. The investment is part of a broader strategy to position Intel for future growth and ensure the U.S. remains a leader in advanced semiconductor manufacturing. Intel's commitment to delivering trusted and secure semiconductors to the U.S. Department of Defense was reaffirmed in the agreement [1].

The government's investment in Intel is a passive ownership, with no Board representation or other governance or information rights. The government agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions. Additionally, the government will receive a five-year warrant, exercisable only if Intel ceases to own at least 51% of the foundry business [1].

Intel's expansion of its domestic chipmaking capacity is a key part of the company's strategy. Over the last five years, Intel has invested $108 billion in capital and $79 billion in R&D, with a significant portion dedicated to expanding U.S.-based manufacturing capacity and process technology. The company is currently undertaking a major expansion, investing more than $100 billion to expand its U.S. sites. The newest chip fabrication site in Arizona is expected to begin high-volume production later this year, featuring the most advanced semiconductor manufacturing process technology on U.S. soil [1].

This agreement comes as many leading technology companies support President Trump's agenda to achieve U.S. technology and manufacturing leadership. Intel's U.S. investments are part of a broader effort to build a strong and resilient U.S. semiconductor supply chain. The agreement is seen as a significant step forward in this effort, with the potential to create jobs, stimulate economic growth, and enhance national security [1].

References:
[1] https://www.intc.com/news-events/press-releases/detail/1748/intel-and-trump-administration-reach-historic-agreement-to