The Trump administration announced on Friday (August 22) that the United States has acquired a 10% equity stake in Intel, a leading American semiconductor company. This move, valued at $10 billion, is part of a broader strategy to bolster domestic semiconductor manufacturing and secure the nation's technological edge.
President Donald Trump stated that the agreement was reached with Intel CEO Lip-Bu Tan, highlighting it as a mutually beneficial deal. "I think it’s a great deal for them. And I think it’s a great deal," Trump said during an Oval Office announcement. The deal aims to convert grant funding from the Biden-era CHIPS Act into an equity stake, as confirmed by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.
The acquisition is part of a larger effort to increase U.S. semiconductor production, a priority for both the Trump and former Biden administrations due to the critical role of semiconductors in various technologies. Currently, a significant portion of the world's chips are produced in Taiwan, but recent investments have been made to enhance U.S. chipmaking capacity.
Intel has faced challenges in recent years, falling behind competitors in technology advancements. The company's new CEO, Lip-Bu Tan, has been working to revitalize Intel, including plans to open a new manufacturing facility in Ohio. Despite these efforts, it remains unclear how the U.S. stake will directly address Intel's core issues, such as its less advanced chip technology compared to competitors like TSMC.
The Trump administration plans to explore similar deals with other companies in critical industries to further strengthen U.S. economic and technological leadership.