President Donald Trump announced a significant deal on Friday that gives the United States a 10% stake in Intel, a major American technology company. Trump shared the news on his Truth Social platform, calling it “a great Deal for America and a great Deal for INTEL.” He mentioned that he personally negotiated the agreement with Intel’s CEO, Lip-Bu Tan.
In his post, Trump expressed pride in the deal, stating that the U.S. now fully owns 10% of Intel, which he referred to as “a Great American Company.” He noted that the shares, valued at around $11 billion, were acquired at no cost to the government. Trump emphasized the importance of Intel’s work in building advanced semiconductors and chips, which he believes are crucial for the nation’s future.
Commerce Secretary Howard Lutnick echoed Trump’s sentiments, highlighting the deal’s potential to strengthen U.S. leadership in the semiconductor industry. He thanked Intel’s CEO for reaching an agreement that benefits both the company and the American people.
CEO Lip-Bu Tan also expressed enthusiasm about the arrangement. He shared that the U.S. government would be investing $8.9 billion in Intel to enhance American semiconductor capabilities. Tan expressed confidence in Intel’s ability to develop cutting-edge technology domestically.
According to a report from The Associated Press, the U.S. government acquired its stake through the conversion of $11.1 billion in previously issued funds and pledges. This deal includes 433.3 million shares of non-voting stock, priced at $20.47 each, which is lower than the closing price of $24.80 on the day of the announcement. This pricing means the government is already seeing a paper gain of $1.9 billion.
This agreement marks a notable moment in U.S. tech policy, with implications for both the economy and national security as the country seeks to bolster its position in the semiconductor market.
