Trump intel 10 percent stake and The U.S. government is investing $8.9 billion in Intel common stock, giving the Trump administration a roughly 10% stake in the struggling chipmaker, Intel and the president announced Friday.

“It is with great honor that I announce that the United States now owns and controls 10% of INTEL, a great American company with an even greater future,” Trump wrote in a post on Truth Social on Friday.

The announcement came after Trump said earlier Friday in the Oval Office that Intel’s CEO had agreed to such a deal and added that he hoped to do similar deals with other companies in the future.

“I said, ‘I think you should pay us 10% of your stake in the company,’” Trump said of his conversations with Intel CEO Lip-Bu Tan. “And they said yes.”

Trump called the deal a win-win situation for both sides.

“I negotiated this deal with Lip-Bu Tan, the company’s highly respected CEO,” Trump wrote in his Truth Social post announcing the deal. The U.S. paid nothing for these shares, and they are now valued at about $11 billion. This is a great deal for America and a great deal for Intel.

The deal is part of a push to increase U.S. semiconductor production and cement America’s leadership in the global chip industry — a key priority of Trump’s second term.

Trump has touted his close relationship with Nvidia CEO Jensen Huang and the AI ​​chip giant’s investments in the U.S. as political successes. He has used them as bargaining chips in trade talks with China and as leverage to pressure U.S. companies like Intel to invest in the U.S. Earlier this month, Trump announced that he would impose a 100 percent tariff on semiconductor imports, excluding companies that have committed to manufacturing in the U.S. Two weeks ago, Trump called for Tan’s immediate resignation after reports emerged of his alleged ties to China.

It was not immediately clear whether the Trump administration intends to interfere in the company’s strategic decisions. According to the company’s press release, the deal gives the U.S. government passive ownership of Intel, “without board representation or other governance or information rights.”

The remaining $5.7 billion that Intel had received from the CHIPs and Science Act but has not yet received will fund the equity investment, along with $3.2 billion pledged to Intel by the Department of Defense under the Secure Enclave program. The government will buy 433.3 million shares at a price of $20.47 per share, representing a 9.9% stake in the company.

“As the only semiconductor company conducting advanced logic research, development and manufacturing in the United States, Intel is fully committed to ensuring that the world’s most advanced technology is produced in America,” Intel CEO Lip-Bu Tan said in a press release.

Trump also said he would pursue more such deals. His administration is considering similar acquisitions of several U.S. companies in key sectors, two people familiar with the White House discussions told CNN last week.

The chipmaker’s (INTC) shares rose 7% on Friday.

Intel’s headquarters in Santa Clara, California, in September 2024. Reports suggest the U.S. government may acquire a stake in the chipmaker.

Trump administration confirms desire to acquire a stake in Intel. Why? That depends on who you ask.

After Trump met with Tan at the White House last week, reports emerged that the White House was considering the unusual step of acquiring a stake in Intel. Earlier this week, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick confirmed the talks, saying the transaction would likely involve the conversion of Biden-era CHIPS Act funds into equity.

“America should benefit from this deal,” Lutnick told CNBC.

On Friday, following Trump’s announcement, Lutnick posted on X: “The United States now owns 10% of Intel, one of our largest American technology companies.”

“This historic deal strengthens American leadership in semiconductors, which will both drive our economic growth and help secure America’s technological lead,” Lutnick wrote in the post. “Thank you to Intel CEO Lip-Bu Tan for this agreement, which is a win-win for both Intel and the American market.”