US Government Confirms Bid for 10% Intel Stake, Converts CHIPS Act Funds to Equity
US Government Confirms Bid for 10% Intel Stake, Converts CHIPS Act Funds to Equity
SAN FRANCISCO – In an extraordinary move, the U.S. government is actively pursuing a significant 10% ownership stake in Silicon Valley giant Intel. U.S. Commerce Secretary Howard Lutnick confirmed the ambitious plan on Tuesday, revealing that federal grants previously allocated to Intel under the CHIPS and Science Act will be converted into equity, making the government one of the company’s largest shareholders.
This development follows closely on the heels of Japanese tech conglomerate SoftBank Group’s recent disclosure of a $2 billion investment, acquiring a 2% stake in Intel. Lutnick emphasized the Trump administration’s rationale, stating, “We think America should get the benefit of the bargain,” aligning the initiative with President Donald Trump’s broader agenda to bolster domestic chip production.
The proposed federal investment marks a dramatic shift, particularly given President Trump’s earlier public call for Intel CEO Lip-Bu Tan’s resignation. That stance has since softened, leading to a truce that seemingly paved the way for these negotiations.
While the U.S. government has historically intervened in distressed industries, such as its 2008 investment in General Motors, a direct equity conversion of federal grants into a major stake in a leading tech firm is highly unusual. The move underscores the administration’s determination to secure a tangible return on taxpayer investments in the critical semiconductor sector, even as Intel navigates ongoing challenges in a competitive market dominated by rivals like Nvidia and AMD.
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