Trump administration to take nearly 10% stake in Intel through grant conversion

The U.S. government is reportedly set to announce a significant equity stake in Intel, a key player in the semiconductor industry, as part of a broader strategy to secure value from federal grants. Sources indicate that the Trump administration is considering acquiring a nearly 10% equity position in Intel through a deal that converts existing grant commitments into convertible equity, rather than issuing new public funds [1]. This move follows a two-week period of speculation in Washington about the administration’s interest in leveraging financial support in exchange for shares [2]. The White House has confirmed ongoing discussions with Intel about acquiring a stake of up to 10% in the company [3].

This initiative aligns with the Trump administration’s broader economic philosophy, which emphasizes ensuring returns on taxpayer investments. “If we're going to give you the money, we want a piece of the action,” Trump reportedly said, highlighting the administration’s rationale for seeking a financial stake in private companies [4]. The proposed 10% stake would amount to approximately $10 billion in equity, according to reports [5]. This approach is seen as a way to secure returns on public investment while maintaining strategic control over domestic semiconductor production, a priority outlined in the 2022 CHIPS Act [6].

The administration has not ruled out similar arrangements with other companies benefiting from the CHIPS Act, though no concrete plans have been announced for larger firms [7]. Analysts and critics, however, remain cautious about the long-term implications of government stock ownership. Some argue that such a model could blur the lines between public and private enterprise, potentially leading to governance conflicts and regulatory complexities [8]. The proposed deal with Intel represents a significant shift in how federal grants may be structured in the future, with broader implications for U.S. industrial policy.

The deal with Intel is expected to be announced as early as Friday, according to several reports, though specific details remain under negotiation [9]. The administration is reportedly considering converting existing grant obligations into equity rather than issuing new funds, a strategy that could set a precedent for future technology-related investments. This approach has drawn comparisons to similar proposals involving SoftBank, though the Trump administration’s focus appears to be primarily on domestic firms [10].

Sources:

[1] https://www.reuters.com/business/trump-poised-unveil-intel-deal-equity-stake-friday-bloomberg-news-reports-2025-08-22/

[2] https://www.wsj.com/tech/trump-to-announce-u-s-taking-nearly-10-stake-in-intel-1a38225d?gaa_at=eafs&gaa_n=ASWzDAgBD-_kld9mV0v1mC4yOybtW_T3OPQTHrNKjkVP_OMbymn6HqGjqjmg

[3] https://www.dw.com/en/why-us-government-seeks-stake-in-chipmaker-intel/a-73701338

[4] https://www.latimes.com/business/story/2025-08-21/heres-why-you-dont-want-the-trump-administration-to-buy-stock-in-intel

[5] https://www.reuters.com/business/trump-administration-not-eyeing-equity-companies-that-are-increasing-us-2025-08-21/

[6] https://www.barrons.com/articles/intel-stock-trump-chips-act-softbank-615c274a

[10] https://www.azcentral.com/story/money/business/tech/2025/08/21/what-softbanks-investment-trumps-equity-proposal-means-for-intel-in-arizona/85713047007/