The US government has officially taken a 10% stake in Intel in what seems to be a bid to save the chip maker, Secretary of Commerce Howard Lutnick unveiled in a post on X on Friday.
Intel confirmed its agreement with the Trump Administration in a press release issued late Friday, saying it reflects “the confidence the administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry.”
Under the deal, the US government is committing $8.9 billion to purchase Intel stock, which would give the government a 9.9% stake in the company. That’s in addition to the $2.2 billion grant Intel has already received from the US under the CHIPS Act, which was signed into law by former President Joe Biden in 2022.
“President Trump’s focus on US chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security,” said Intel CEO Lip-Bu Tan, adding that “Intel is deeply committed to ensuring the world’s most advanced technologies are American-made.”
The move shows the incredible importance of semiconductors as economic growth hinges increasingly on the chips that power generative artificial intelligence. The data center boom spurred by the meteoric rise of AI has a few key bottlenecks, with the availability of essential chips being perhaps the most significant. These data centers also rely heavily on access to sometimes scarce energy, water and land. The US also faces intense competition from China for the tools to develop more advanced AI models, including semiconductors.
Lutnick said in the press release that the Trump administration “remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security.”
In comments made on the CNBC show Squawk on the Street, Lutnick justified the move as a way to ensure American taxpayers get the most from investments made via the CHIPS Act — legislation meant to supercharge domestic chip manufacturing.
“We should get an equity stake for our money,” Lutnick said.
BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies.
This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.
Thanks to Intel… pic.twitter.com/AYMuX14Rgi
— Howard Lutnick (@howardlutnick) August 22, 2025
The government won’t have a seat on Intel’s board, however.
The CEOs of Microsoft, Dell, HP and AWS commented on the investment, each citing the importance of the US semiconductor industry.
“Leading-edge semiconductors are the bedrock of every AI technology and cloud platform, making US investment in this critical industry one of the most important technological, economic and national security imperatives of our time,” said AWS CEO Matt Garman. “Intel plays a vital role as one of the country’s leading chip manufacturers.”
Neither the Department of Commerce nor Intel immediately responded to requests for comment.
The move is a major change in US corporate policy but isn’t without precedent. Usually, the federal government will only enter the private market in certain emergency situations. For example, during the 2008 financial crisis, the government took a 60% stake in General Motors and took equity stakes in major banks to help the financial system.
The Intel stake is a tad unusual in that the US isn’t currently helping corral resources for a major war, and there isn’t a financial crisis gripping the country. What is happening, however, is increased global competition in chip fabrication and AI.
Microprocessors are the brains that power pretty much every electronic device currently on the market. Advanced chips are also necessary for powering the next generation of artificial intelligence systems. Intel, a once-lauded American chipmaker, has been struggling to break through a competitive market where the Taiwan Semiconductor Manufacturing Company has run away with advanced fabrication.
On the chip design end, both Nvidia and AMD have led the charge in US innovation, effectively powering the world’s AI, cloud and computing systems. Intel made some bad design decisions and risky bets that ultimately haven’t paid off. As a result, electronics makers are looking toward other companies and designs to power their products.