Trump Administration Invests $8.9 Billion in Intel

As anticipated in mid-August , the Trump administration invested $8.9 billion in Intel. This represents approximately 10% of the company's shares. The majority will be funded by government grants under the CHIPS and Science Act. A few days earlier, the California-based company received $2 billion from SoftBank.

Agreement between Intel and the Trump administration

Intel 's press release states that the agreement signed with the Trump administration will strengthen US leadership in semiconductor manufacturing. The government will invest $8.9 billion in Intel common stock. Specifically, it will purchase 433.3 million shares at a price of $20.47 per share, equivalent to 9.9% of the California-based company.

The government's equity investment will be funded by the remaining $5.7 billion in previously awarded, but not yet disbursed, grants under the CHIPS and Science Act and $3.2 billion awarded to the company under the Secure Enclave program.

Intel will continue to fulfill its obligations under the Secure Enclave program and reaffirmed its commitment to providing reliable and secure semiconductors to the U.S. Department of Defense. The $8.9 billion investment builds on the $2.2 billion in grants Intel has already received, bringing its total investment to $11.1 billion.

Intel emphasizes that the government will have a passive stake, meaning no representation on the board. It will vote with the board only on matters requiring shareholder approval. If Intel's stake in the foundries falls below 51%, the government will receive an additional 5% at $20 per share.

Similar agreements could be signed with other companies that have received subsidies under the CHIPS and Science Act, but only if they do not increase investment in the United States. TSMC and Micron are therefore excluded.