Intel has announced a substantial investment agreement with the Trump Administration to support U.S. technological and manufacturing leadership. The federal government will invest $8.9 billion in Intel common stock, sourced from grants under the CHIPS and Science Act and the Secure Enclave program. This brings the total government investment in Intel to $11.1 billion, including previous grants and investments.
Through this deal, the government will acquire 433.3 million shares at $20.47 each, equating to a 9.9% stake in Intel at a discounted price. The investment remains passive: the government will not gain Board representation or governance rights but will vote alongside Intel’s Board on shareholder matters, with some exceptions. Additionally, the government will receive a five-year warrant to purchase up to 5% more shares at $20 each—exercisable only if Intel’s foundry ownership drops below 51%.
To ensure stability, claw-back and profit-sharing provisions from earlier grants are eliminated, providing permanent capital for Intel’s plans. Intel continues to fulfill its Secure Enclave obligations and reaffirms its commitment to secure semiconductor production for national defense.
Since its founding, Intel has invested heavily in American research and development, as well as manufacturing. Over the past five years alone, it has committed $108 billion to capital expenditures and $79 billion to research and development, with a focus on expanding U.S. production capabilities. Currently, Intel is investing over $100 billion to expand its domestic chipmaking capacity, with the new Arizona facility scheduled to commence high-volume manufacturing using cutting-edge technology later this year.
The agreement reflects widespread support for U.S. semiconductor leadership from technology giants and the government, reinforcing efforts to build a robust and resilient American supply chain.
Advisor: PJT Partners acted as Intel’s exclusive financial advisor in connection with this investment agreement.
KEY QUOTES:
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made. President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”
Lip-Bu Tan, CEO of Intel
“Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world. As more companies look to invest in America, this administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security.”
Howard Lutnick, United States Secretary of Commerce
“The decades-long partnership between Microsoft and Intel has pioneered new frontiers of technology and showcased the very best of American ingenuity and innovation. Intel’s continued investment in strengthening the U.S. semiconductor supply chain, supported by President Trump’s bold strategy to rebuild this critical industry on American soil, will benefit the country and broader technology ecosystem for years to come.”
Satya Nadella, Chairman and Chief Executive Officer, Microsoft
“The industry needs a strong and resilient U.S. semiconductor industry, and no company is more important to this mission than Intel. It’s great to see Intel and the Trump Administration working together to advance U.S. technology and manufacturing leadership. Dell fully supports these shared priorities, and we look forward to bringing a new generation of products to market powered by American-designed and manufactured Intel chips.”
Michael Dell, Chairman and Chief Executive Officer, Dell Technologies
“We share Intel’s and the Trump Administration’s deep commitment to building a strong, resilient and secure U.S. semiconductor industry. Intel’s continued investment in domestic R&D and manufacturing is integral to future innovation and will strengthen the partnership between HP and Intel for years come. This is a defining moment for great American companies to lead the world in cutting-edge technologies that will shape the future.”
Enrique Lores, President and CEO, HP
“Leading-edge semiconductors are the bedrock of every AI technology and cloud platform, making U.S. investment in this critical industry one of the most important technological, economic and national security imperatives of our time. Intel plays a vital role as one of the country’s leading chip manufacturers, and we applaud the Trump administration’s efforts to usher in a new era of American innovation in partnership with American companies.”
Matt Garman, AWS CEO
