Chipmaking giant Intel has struck a historic deal with the US government, granting Washington a 9.9% equity stake valued at $8.9 billion — a move President Donald Trump hailed as proof of his negotiating prowess.
The agreement, which Trump framed as the country securing shares “for free,” builds on grants first approved under Joe Biden’s CHIPS Act. It bundles $5.7 billion in unpaid grants with $3.2 billion from Intel’s Secure Enclave program, on top of $2.2 billion previously awarded — bringing federal support for Intel to $11.1 billion.
While Commerce Secretary Howard Lutnick celebrated the deal as a watershed moment for US semiconductor dominance, critics sounded alarms. Tech analyst Rob Enderle cautioned it could open the door to creeping nationalization, while the Cato Institute’s Scott Lincicome warned it risked politicizing Intel’s future.
Intel CEO Lip-Bu Tan insisted the company remains independent, stressing the government will have no governance rights. Still, the move cements Trump’s narrative of reshoring critical industries while sparking debate over how far Washington should go in shaping the private sector.
