The US government is investing $8.9 billion into Intel, primarily using already committed funds from the CHIPS Act. This includes $5.7 billion in remaining grants under the Biden administration’s CHIPS Act and $3.2 billion from the Secure Enclave program. President Donald Trump announced that Intel CEO Lip-Bu Tan agreed to give the government a 10 percent ownership stake, though this stake will be passive without board representation. Trump initially pushed for this partnership as a way to keep Tan in his position amid scrutiny over his China ties. This move aligns with the government’s broader chip industry strategy, as SoftBank recently pledged $2 billion to expand Intel’s US chipmaking. Treasury Secretary Scott Bessent confirmed this is more a conversion of grants to stabilize US chip production rather than a direct new investment. Trump indicated more deals like this could come in the future.
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