U.S. to Take 10% Stake in Intel, Trump Confirms

The U.S. government is preparing to take a 10% stake in Intel, President Donald Trump told reporters on Friday. Bloomberg was first to break the news, which sent the chipmaker’s stock soaring more than 7%. Trump confirmed that Intel had agreed to the proposal.

Intel declined to comment on the matter.

The news comes at a pivotal — and turbulent — moment for Intel. CEO Lip-Bu Tan is in the midst of a major restructuring effort, closing down certain business units and laying off employees as the company tries to refocus on its core operations and catch up with rivals like Nvidia.

Earlier this month, Trump urged Tan to step down over what he viewed as potential conflicts of interest. Tan later met with the president to discuss solutions that would ease those concerns and identify ways for Intel and the U.S. government to collaborate.

Speaking to the White House press pool, Trump acknowledged the resignation push.

“I said well if that’s right he should resign and he came in and he saw me we talked for a while. I liked him a lot,” Trump said, according to emailed comments from the press pool. “I thought he was very good. I thought he was somewhat a victim but you know nobody’s a total victim I guess, and I said, you know what, I think the United States should be given 10% of Intel. And he said, I would consider that. I said, well, I’d like you to do that because Intel’s been left behind as, you know, compared to Jensen. And some of our friends at Nvidia.”

Trump went on to say: “I said I think it would be good having the United States as your partner. He agreed. And they’ve agreed to do it and I think it’s a great deal for them and I think it’s a great deal.”

If finalized, this move would represent a major shift in U.S. economic policy. Government equity stakes in private corporations are rare and usually controversial. Notable exceptions occurred during the 2008–2009 financial crisis, when the government temporarily acquired ownership in companies like General Motors, AIG, and several major banks to prevent systemic collapse. Those holdings were later sold back to private investors over time.

The Intel deal — expected to be announced later Friday — comes just days after Japanese conglomerate SoftBank committed a $2 billion investment in the chipmaker. That agreement, described as a commitment to advancing semiconductor technology in the U.S., had SoftBank purchasing Intel common stock at $23 per share. By Friday afternoon, Intel shares were trading closer to $25.

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