President Donald Trump has brokered a landmark deal for the United States, securing a 10% stake in the semiconductor giant, Intel. The announcement came on Friday and was first shared by Trump on his Truth Social platform, where he took pride in personally negotiating the arrangement with Intel CEO Lip-Bu Tan.
Trump celebrated the acquisition as a triumph for the nation, stating, “It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future.” He further emphasized that the U.S. government acquired the shares at no cost, with an estimated value of approximately $11 billion. Trump underscored the significance of this deal as a strategic investment in America's technological sovereignty, especially in the semiconductor and chip manufacturing sectors, industries he deems crucial for the country's future.
Commerce Secretary Howard Lutnick echoed Trump's sentiments in a Truth Social post, hailing the deal as historic and a reinforcement of U.S. leadership in semiconductors. These advancements, according to Lutnick, are expected to bolster the economy and secure America's technological advantage.
Intel's CEO, Lip-Bu Tan, also expressed optimism, confirming the U.S. government's $8.9 billion investment, as reported by the Daily Wire, and its impact on advancing American semiconductor development. Tan's tweet after meeting with President Trump conveyed excitement about the future of silicon technology and computing products being designed and built in the U.S.
The transaction was structured through the conversion of $11.1 billion in previously allocated funds and pledges into 433.3 million non-voting shares of Intel stock, priced at $20.47 each. This valuation was below the closing price of $24.80 on the announcement day, granting the government an immediate paper gain of $1.9 billion.
The Trump administration has framed the Intel deal as a strategic move in the ongoing battle for American technological supremacy, highlighting the importance of domestic chip production for national security and economic competitiveness. This deal is one of the largest direct government stakes in a major U.S. technology company in recent memory. It represents a clear focus on reshoring semiconductor manufacturing and ensuring critical technology remains under U.S. control.
Industry analysts believe this deal could expedite Intel's domestic production plans while granting the government substantial influence over the company's strategic directions. The administration has presented the deal as beneficial for both national security and economic growth, offering Intel additional resources to compete on a global stage.
As the U.S. now holds a significant portion of Intel stock, the government gains both influence and potential profit, signaling a bold step towards securing America's technological future. Trump hailed the development as a major milestone, a testament to the administration's commitment to protecting U.S. interests in cutting-edge technology.
