US Converts Grants for 9.9% Intel Stake
President Donald Trump confirmed that the U.S. government has acquired a 9.9% equity stake in Intel. The move comes after federal grants allocated under the CHIPS and Secure Enclave programs were converted into ownership shares. The government will pay about $8.9 billion for 433.3 million shares at $20.47 each.
Share Value and Market Impact
The purchase price was below Intel’s recent closing price of $24.80, giving the U.S. government an immediate paper gain of nearly $1.9 billion. With this stake, the U.S. becomes one of Intel’s largest shareholders. Officials clarified that the investment is passive, with no voting rights or board control attached.
Strategic Objective
The decision is part of a broader plan to strengthen domestic semiconductor production. Intel, once a global leader in chip manufacturing, has been struggling with factory delays, declining revenues, and increased competition. The government stake is seen as a show of support to help the company stabilize and accelerate its turnaround efforts.
Political and Industry Reaction
The unusual move has sparked debate. Supporters argue it underscores the strategic importance of securing U.S. semiconductor supply chains. Critics, however, warn it may set a precedent for government overreach into private corporations and distort market competition.
Next Steps
Intel will continue to operate as an independent company, but analysts expect further scrutiny of its progress in ramping up U.S. chip production. Observers are also watching to see if similar government investments could be extended to other firms in the technology sector.
