Commerce Department takes 10% Intel stake for $8.9bn
Updated
Updated · The Wall Street Journal · May 7
Commerce Department takes 10% Intel stake for $8.9bn
11 articles · Updated · The Wall Street Journal · May 7
The deal followed a White House meeting with Intel chief executive Lip-Bu Tan, days after President Donald Trump had called for his resignation over reported China ties.
It is part of a broader Trump administration push to take direct stakes in at least 10 companies, including critical-minerals groups and a golden share in US Steel.
Officials say the strategy aims to reduce reliance on foreign supply chains and counter China, while critics warn it expands executive power and distorts markets.
With the government as a shareholder, who now controls America’s top corporations?
How will government stakes in private firms reshape American innovation and free-market competition?
The Landmark $8.9 Billion U.S. Equity Investment in Intel: Risks, Rewards, and Controversies
Overview
In August 2025, facing severe financial challenges and intense competition, Intel received a near 10% equity investment of $8.9 billion from the U.S. government, funded by CHIPS Act grants and Defense Department programs. This passive ownership aimed to secure national security by revitalizing America's only advanced domestic chipmaker. CEO Lip-Bu Tan launched a $100 billion plan to expand U.S. manufacturing, supported by government grants and contracts, creating thousands of jobs and advancing cutting-edge technology. Despite initial market optimism, the deal sparked legal challenges and geopolitical tensions, raising concerns about government influence, market distortion, and taxpayer risks. The outcome will shape future U.S. industrial policy and semiconductor leadership.