Intel to receive $8.9 billion investment from Trump administration.

Intel has reached a historic agreement with the Trump Administration to accelerate American technology and manufacturing leadership. The US government will invest $8.9 billion in Intel common stock, recognizing the company's role in expanding the domestic semiconductor industry. This agreement builds upon Intel's more than $100 billion expansion of its resilient supply chain.

Intel Corporation (Nasdaq: INTC) has reached a significant agreement with the Trump Administration, marking a historic step in accelerating American technology and manufacturing leadership. The U.S. government will invest $8.9 billion in Intel common stock, underscoring its confidence in the company's role in expanding the domestic semiconductor industry. This agreement builds upon Intel's more than $100 billion expansion of its resilient semiconductor supply chain [1].

Under the terms of the agreement, the U.S. government will purchase 433.3 million primary shares of Intel common stock at a price of $20.47 per share, equating to a 9.9 percent stake in the company. The investment is funded by the remaining $5.7 billion in grants previously awarded under the U.S. CHIPS and Science Act and $3.2 billion from the Secure Enclave program. This $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has already received, making for a total investment of $11.1 billion [1].

Lip-Bu Tan, CEO of Intel, emphasized the company's commitment to advancing American-made technology, stating, "As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made." The agreement supports Intel's broader strategy to position the company for future growth and strengthen its financial position [1].

The U.S. government's investment will be a passive ownership, with no Board representation or other governance or information rights. The government will 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 for an additional five percent of Intel common shares, exercisable only if Intel ceases to own at least 51% of the foundry business. The existing claw-back and profit-sharing provisions associated with the government’s previously dispersed $2.2 billion grant under the CHIPS Act will be eliminated to create permanency of capital as Intel advances its U.S. investment plans [1].

Intel's U.S. investments come as many leading technology companies support President Trump's agenda to achieve U.S. technology and manufacturing leadership. Satya Nadella, Chairman and CEO of Microsoft, noted that Intel's continued investment in strengthening the U.S. semiconductor supply chain, supported by President Trump's strategy, will benefit the country and broader technology ecosystem for years to come [1].

This agreement signifies a significant milestone in Intel's strategic investment in research, development, and manufacturing in the United States. Over the last five years, Intel has invested $108 billion in capital and $79 billion in R&D, with the majority dedicated to expanding U.S.-based manufacturing capacity and process technology. Intel's 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].

The agreement with the Trump Administration supports Intel's broader strategy to position the company for future growth and strengthen its financial position. As the semiconductor industry faces increasing competition and rapid technological change, Intel's continued investment in the U.S. semiconductor supply chain is crucial for maintaining American leadership in this critical sector [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250822458848/intel-and-trump-administration-reach-historic-agreement-to-accelerate-american-technology-and-manufacturing-leadership