US government takes minority stake in Intel to support Ohio chip plant

The United States has acquired a 10% stake in Intel Corporation, one of the world’s leading chip manufacturers, US President Donald Trump announced on his Truth Social page.

“It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future,” Trump wrote.

He added that the agreement was reached with Intel CEO Lip-Bu Tan, and that the US “paid nothing for these shares,” which are currently valued at roughly $11 billion. The president described the deal as “great for both America and Intel, emphasising the strategic importance of advanced semiconductors and chips for the country’s future.

Bloomberg and The Wall Street Journal reported last week, citing sources, that the Trump administration had been in talks with Intel regarding a potential stake purchase. At the time, the White House did not confirm discussions, and Intel declined to comment on “rumours or speculation.”

According to the reports, the discussions occurred during a meeting between Trump and Lip-Bu Tan on August 11. The investment is intended, in part, to support Intel’s planned factory in Ohio, which is slated to become the world’s largest chip manufacturing facility but has experienced repeated delays. Intel, facing financial strain, announced in July that it would cut 15% of its workforce by the end of 2025, with the Ohio plant now not expected to open until the 2030s.

Bloomberg noted that the government stake is designed to bolster Intel’s financial position after the company reported a $2.9 billion loss in the second quarter of 2025. The arrangement reportedly includes provisions for retaining Tan as CEO, despite Trump’s public call for his “immediate” resignation. At the same time, the WSJ highlighted investor concerns that government funding alone would not resolve Intel’s broader challenges, including its outdated business model.

The Intel investment is part of a broader pattern of unusual corporate interventions by the Trump administration. Recent examples include allowing AI chipmaker Nvidia to sell H20 chips to China in exchange for the US government receiving 15% of sales, a similar deal with AMD, and the Pentagon becoming the largest shareholder in a small mining company to boost rare-earth magnet production.

The government also negotiated a “golden share” with veto rights as part of a deal enabling Nippon Steel to acquire US Steel. Critics warn that such moves could create new categories of corporate risk.

Trump’s announcement follows a $2 billion capital injection from SoftBank Group, which had been viewed as a major vote of confidence in Intel amid its ongoing turnaround.

Daniel Morgan, senior portfolio manager at Synovus Trust, noted that the company’s challenges extend beyond cash infusions or government equity stakes.

“Without government support or another financially stronger partner, it will be difficult for Intel’s foundry unit to raise enough capital to continue to build out more fabs at a reasonable rate,” he said, adding that Intel must catch up technologically with Taiwan Semiconductor Manufacturing Company to remain competitive and attract business.

By Tamilla Hasanova