Aug. 22 (UPI) — The United States government will own a 10% share of common stock in U.S. chipmaker Intel in exchange for $11 billion in already-promised federal funding.
President Donald Trump and Intel officials announced they reached an agreement on the federal stake in the California tech firm on Friday.
“It is my great honor to report that the United States of America now fully owns and controls 10% of Intel,” Trump said Friday in a Truth Social post.
He called Intel a “great American company that has an even more incredible future” and said the nation paid nothing to obtain Intel common shares valued at about $11 billion.
“This is a great deal for America and also a great deal for Intel,” Trump said. “Building leading-edge semiconductors and chips, which is what Intel does, is fundamental to the future of our nation.”
Although Trump said the federal government would not pay to obtain the 10% stake in Intel, the Santa Clara, Calif.-based tech firm indicated it will receive about $11 billion for the common stock.
The federal government will provide $5.7 billion in existing grant funds that were yet to be paid after the Biden administration previously allocated them through the U.S. CHIPS and Science Act, Intel announced on Friday.
Intel also will receive $3.2 billion that had been awarded to it via the Secure Enclave program.
Intel already received $2.2 billion in federal in CHIPS grants, making the total federal investment in it $11.1 billion.
“As the only semiconductor company that does leading-edge R&D and manufacturing in the U.S., Intel is deeply committed to ensure the world’s most advanced technologies are American-made,” Tan said.
“President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security,” he added.
“We are grateful for the confidence the president and the administration have placed in Intel,” Tan continued, “and we look forward to working to advance U.S. technology and manufacturing leadership.”
Trump earlier this week said he wanted the federal government to get a 10% stake in Intel in exchange for the money already earmarked for the tech firm.
The funds already were committed by the Biden administration, so the stake did not cost any additional money, Treasury Secretary Howard Lutnick said on Tuesday.
Intel is building a semiconductor complex in Ohio, which would help to lessen the nation’s reliance on chips produced in Taiwan and other locales.
The new Intel manufacturing facilities are scheduled to start opening in 2030 at a location near Columbus, Ohio.