Intel Reaches Historic Agreement with U.S. Government to Strengthen American Technology and Semiconductor Manufacturing
Intel Corporation has signed a landmark agreement with the Trump Administration aimed at accelerating U.S. leadership in technology and semiconductor manufacturing. Under the deal, the U.S. government will invest $8.9 billion in Intel common stock, marking one of the most significant federal investments in the domestic chip industry to date.
The funding will be provided through remaining grants under the CHIPS and Science Act and the Secure Enclave program, raising Intel’s total support from CHIPS-related initiatives to $11.1 billion. The government will acquire 433.3 million shares at $20.47 per share, representing a 9.9% stake in Intel. The investment will be passive, with no board representation, and the government’s voting rights will align with Intel’s Board recommendations.
“As the only U.S.-based semiconductor company engaged in leading-edge R&D and manufacturing, Intel is committed to producing advanced technologies domestically,” said Lip-Bu Tan, CEO of Intel. “This historic investment supports our national and economic security objectives.”
Intel is currently undertaking more than $100 billion in U.S. manufacturing expansions, including a new fabrication facility in Arizona that is expected to begin production soon. The agreement underscores Intel’s role in building a resilient semiconductor supply chain, a cornerstone of U.S. economic and national security strategy.
Industry leaders welcomed the move.
Satya Nadella, Chairman and CEO of Microsoft, said: “The decades-long partnership between Microsoft and Intel has pioneered new frontiers of technology… This bold strategy will benefit the country and the broader technology ecosystem for years to come.”
Michael Dell, Chairman and CEO of Dell Technologies, added: “The industry needs a strong and resilient U.S. semiconductor base, and no company is more important to this mission than Intel.”
Matt Garman, CEO of AWS, emphasized: “Leading-edge semiconductors are the bedrock of every AI technology and cloud platform… We applaud the Trump Administration’s efforts to usher in a new era of American innovation.”
The agreement highlights a coordinated push to restore U.S. leadership in advanced chipmaking, reduce reliance on foreign supply chains, and secure the nation’s position in the global technology race.