The U.S. technology sector made headlines on August 22 as the Commerce Department confirmed the government has acquired a 10% stake in Intel, marking the latest move in the Trump administration’s efforts to strengthen domestic semiconductor production.
The announcement by Commerce Secretary Howard Lutnick underscores a significant shift in U.S. industrial policy, with Washington taking a more active role in private sector investments.
According to Intel’s statement, the U.S. government has invested $8.9 billion to purchase 433.3 million common shares at $20.47 per share, securing a 10% ownership in the company. Notably, this price is below current market value, meaning the government’s stake is now worth approximately $11 billion.
The investment includes:
$5.7 billion from previously approved but undisbursed CHIPS Act grants.
$3.2 billion from a separate secure chip manufacturing program.
President Trump highlighted the deal on Truth Social, stating:
“This is a great deal for America and a great deal for Intel.”
Under the agreement, the government also retains the right to purchase an additional 5% stake if Intel no longer holds a majority interest in its semiconductor manufacturing division. However, Intel emphasized that the government will not have board seats or management control.
Earlier this week, SoftBank announced a $2 billion investment in Intel, equivalent to a 2% ownership stake, further signaling confidence in the U.S. chipmaker’s long-term strategy.
This investment reflects Washington’s broader strategy to secure domestic chip supply chains and reduce reliance on Asian manufacturers, particularly TSMC (Taiwan Semiconductor Manufacturing Company), which currently leads in advanced semiconductor technology.
Intel is investing billions to build a semiconductor manufacturing hub in Ohio, dubbed “Silicon Heartland”, aimed at producing cutting-edge chips for technologies such as artificial intelligence (AI). However, CEO Lip-Bu Tan recently indicated the company would slow construction based on market conditions, with full-scale operations expected by 2030.
Intel also noted that last fall it secured nearly $8 billion in CHIPS and Science Act funding to support its advanced manufacturing plans. The CHIPS Act, signed into law in 2022, was designed to strengthen America’s semiconductor leadership and boost competitiveness.
.png){kind=logo}
Tiếng Việt
English
