As part of an effort to revive the struggling chipmaker and strengthen domestic semiconductor production, US President Donald Trump has signed a deal with Intel Corporation to acquire a 10 per cent stake.
The deal was finalised on Friday, and it gives Washington 433.3 million Intel shares. The purchase of the Intel shares will be made with funding from the $5.7 billion in unpaid grants from the Biden-era CHIPS Act and $3.2 billion awarded to Intel for the Secure Enclave program, also awarded under Trump's predecessor, Democratic President Joe Biden.
The total government backing for Intel now stands at $11.1 billion, which the chipmaker will be using for building or expanding factories in the U.S.
Intel stock rose roughly 1% in the extended session on Friday after closing up 5.5% during regular trading.
The deal puts Trump on better terms with Intel CEO Lip-Bu Tan, after the president recently said the CEO should step down due to conflicts of interest. Trump met with Tan on Friday, a White House official said. That followed Trump's August 11 meeting with the Intel CEO after Trump demanded that Tan resign over his ties to Chinese firms.
Commerce Secretary Howard Lutnick said on X that Tan had struck a deal "that's fair to Intel and fair to the American People."
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