To secure tech dominance, U.S. stakes claim in Intel's future

The U.S. government has acquired nearly a 10% stake in Intel Corporation through an $8.9 billion investment in the company’s common stock, marking a historic agreement to bolster domestic semiconductor manufacturing and technology leadership. The investment, facilitated by the Trump Administration, includes $5.7 billion in previously awarded but unallocated grants from the U.S. CHIPS and Science Act and an additional $3.2 billion from the Secure Enclave program. This brings the total U.S. government funding for Intel to $11.1 billion, including $2.2 billion in CHIPS Act grants already received by the company. Under the agreement, the U.S. will purchase 433.3 million shares at $20.47 per share, with no voting rights or governance involvement, and will align with Intel’s board on shareholder matters. Additionally, the government received a five-year warrant for 5% of Intel stock, exercisable if Intel’s ownership in its foundry business falls below 51% [1].

The investment aims to strengthen the U.S. semiconductor supply chain and support Intel’s efforts in leading-edge logic R&D and manufacturing. The move is part of a broader strategy by the Trump administration to reinforce American technological and manufacturing dominance, particularly in the semiconductor industry, which is vital to national security and economic growth. Intel has already committed to significant investments in U.S. manufacturing, with a $100+ billion expansion plan, including a new chip fabrication site in Arizona expected to begin high-volume production later in 2025 [1].

In parallel, Intel has also secured a $2 billion investment from SoftBank Group, which will purchase 87 million shares at $23 per share, further reinforcing Intel’s financial position and enabling continued innovation in semiconductor technology. SoftBank’s investment aligns with its long-term vision of supporting the AI revolution and advancing next-generation infrastructure in the U.S. [2].

This surge of capital into Intel follows years of strategic investment in U.S. manufacturing and R&D, with the company allocating $108 billion in capital and $79 billion in research and development spending over the past five years. The funding is expected to accelerate the development and deployment of advanced semiconductor manufacturing processes, with Intel’s Arizona facility set to produce some of the most advanced chips in the world [1].

The U.S. government’s equity stake in Intel has drawn attention from industry experts and policymakers, with some voices cautioning against potential drawbacks. Critics argue that converting CHIPS Act grants into equity could dilute the original intent of the program, which was to offset the higher costs of U.S. manufacturing and incentivize semiconductor production on American soil. By converting grants into an equity stake, the government may inadvertently make it more difficult for Intel to raise additional capital in the future [4].

Nevertheless, the administration defends the move as a strategic investment that aligns with broader national security and economic objectives. Intel’s leadership has reiterated its commitment to U.S. manufacturing, emphasizing that the company remains the only semiconductor manufacturer conducting leading-edge R&D and manufacturing in the United States. The partnership is seen as a model for how government and industry can collaborate to secure supply chains and promote technological independence [1].

Industry leaders, including executives from Microsoft, Dell, HP, and Amazon Web Services, have expressed support for the U.S. government’s investment in Intel and the broader initiative to strengthen the domestic semiconductor ecosystem. These endorsements highlight the critical role that Intel plays in enabling the next generation of AI, cloud computing, and advanced technologies that will define the future of digital innovation [1].

Source:

[1] Intel and Trump Administration Reach Historic Agreement (https://newsroom.intel.com/corporate/intel-and-trump-administration-reach-historic-agreement)

[2] SoftBank Group and Intel Corporation Sign $2B Investment (https://www.intc.com/news-events/press-releases/detail/1746/softbank-group-and-intel-corporation-sign-2b-investment)

[3] SoftBank Group and Intel Corporation Sign $2B Investment (https://newsroom.intel.com/corporate/softbank-group-and-intel-corporation-sign-2b-investment-agreement)

[4] The Trump Administration Should Refrain From Taking Equity in Semiconductor Companies (https://itif.org/publications/2025/08/21/the-trump-administration-should-refrain-from-taking-equity-in-semiconductor-companies/)