In a landmark move to bolster domestic semiconductor production, the U.S. government has announced it will take a 10% equity stake in Intel, one of the country’s leading chipmakers. The announcement was made by Secretary of Commerce Howard Lutnick, who called the agreement a “historic” step toward securing America’s technological future. “This strengthens US leadership in semiconductors, which will both grow our economy and help secure America’s technological edge,” Lutnick posted on X, alongside a photo with Intel CEO Lip-Bu Tan.
The $8.9 billion investment in Intel will come from previously approved but unpaid grants under the CHIPS and Science Act, a bipartisan initiative launched during the Biden administration aimed at bringing chip manufacturing back to the U.S. The agreement was officially unveiled by President Donald Trump during a press conference at the White House, where he called it a “great deal for them,” referring to Intel.
Following the news, Intel’s stock surged more than 5%, reflecting renewed investor confidence. Despite its storied history, Intel has struggled in recent years to compete with tech giants like Nvidia, whose market cap has exceeded $4 trillion, while Intel’s remains around $100 billion. The company has lagged behind in mobile technology and artificial intelligence—two areas where Nvidia has taken the lead.
Intel CEO Lip-Bu Tan emphasized the strategic importance of the deal: “As the only semiconductor company that conducts leading-edge R&D and manufacturing in the US, Intel is committed to ensuring the world’s most advanced technologies are American made.” He credited President Trump’s policies for catalyzing renewed investment in critical industries.
However, the announcement comes amid controversy surrounding Tan. Earlier this month, Trump publicly called for his resignation, citing alleged ties to Chinese companies connected to the military. Republican Senator Tom Cotton echoed these concerns in a letter questioning Intel’s eligibility to receive federal support. Tan denied the accusations, calling them “misinformation” and affirming his adherence to ethical and legal standards. Tan, a U.S. citizen born in Malaysia and raised in Singapore, defended his record in an internal memo to Intel employees.
Despite the political tensions, Tan later visited the White House to meet with Trump in an apparent attempt to clear the air and move forward with the agreement, signaling both sides’ commitment to advancing U.S. semiconductor leadership in an increasingly competitive global tech landscape.
