US Government to Take 9.9% Intel Stake in $8.9 Bln Investment

August 24, 2026
By Mintesinot Nigussie

The US government will invest 8.9 billion US dollars in Intel, taking a 9.9 percent stake in the chipmaker as the Trump administration expands its role in the domestic semiconductor industry.

Under the agreement announced by Intel, the government will purchase 433.3 million newly issued Intel shares at 20.47 US dollars each. The investment will be funded by 5.7 billion US dollars in previously awarded but unpaid grants under the US CHIPS and Science Act, together with 3.2 billion US dollars awarded under the Secure Enclave programme.

The investment is in addition to the 2.2 billion US dollars in CHIPS Act grants Intel has already received, bringing the government’s total financial commitment to the company to 11.1 billion US dollars.

The government will hold a passive equity position, with no board seat or other governance or information rights. It has agreed to vote alongside Intel’s board on matters requiring shareholder approval, subject to limited exceptions.

The agreement also gives the government a five-year warrant to purchase additional Intel shares at 20 US dollars each, equivalent to 5 percent of the company’s common shares. The warrant can be exercised only if Intel’s ownership of its foundry business falls below 51 percent.

Intel will continue to meet its Secure Enclave commitments and supply trusted and secure semiconductors to the US Department of Defense, the company said.

The agreement also removes existing clawback and profit-sharing provisions attached to the 2.2 billion US dollars in CHIPS Act funding already distributed to Intel, providing the company with greater certainty over the capital as it advances its US investment plans.

"As the only semiconductor company that does leading-edge logic R&D and manufacturing in the US, Intel is deeply committed to ensuring the world’s most advanced technologies are American made," said Lip-Bu Tan, Intel’s chief executive.

The deal comes as Intel invests more than 100 billion US dollars to expand its manufacturing footprint in the US. The company said its latest fabrication facility in Arizona is expected to begin high-volume production later this year, using its most advanced semiconductor manufacturing technology in the US.

Intel has invested 108 billion US dollars in capital and 79 billion US dollars in research and development over the past five years, with most of that spending directed towards US manufacturing capacity and process technology, according to the company.

The agreement strengthens the US government’s financial involvement in a strategically important chipmaker as Washington seeks to expand domestic semiconductor production and reduce reliance on overseas supply chains.

Howard Lutnick, US commerce secretary, said the government’s investment would help strengthen the country’s semiconductor industry and support its position in artificial intelligence and national security.

Intel said the investment supports Tan’s strategy to strengthen its finances, improve execution and expand its engineering capabilities.

Microsoft, Dell Technologies, HP and Amazon Web Services also expressed support for Intel’s US manufacturing investments and the administration’s efforts to strengthen the domestic semiconductor supply chain.

Source: FSX Business News