WASHINGTON (AP) — The U.S. government is in discussions to acquire a 10% stake in Intel Corporation, a move confirmed by the White House on Tuesday, August 19, 2025. This potential investment would involve converting federal grants previously pledged to Intel under the CHIPS and Science Act into equity, according to statements from the White House and reports from The Associated Press.
Commerce Secretary Howard Lutnick is leading the negotiations, which aim to deepen the Trump administration’s financial involvement with major computer chip manufacturers and bolster domestic production. White House spokeswoman Karoline Leavitt described the initiative as both a national security and economic strategy, emphasizing that the President’s goal is to prioritize “America’s needs,” as reported by The Economic Times.
“The President wants to put America’s needs first, both from a national security and economic perspective, and it’s a creative idea that has never been done before,” said White House spokeswoman Karoline Leavitt
If the deal is finalized, the U.S. government would become one of Intel’s largest shareholders, an unprecedented step that would blur the traditional lines between the public and private sectors in the U.S. economy, according to PBS News. The proposed acquisition comes on the heels of a significant $2 billion investment in Intel by Japanese technology giant SoftBank Group, announced late Monday.
The motivation behind the U.S. government’s interest is rooted in a desire to enhance semiconductor supply chain security, increase domestic chip manufacturing, and strengthen U.S. technological leadership in competition with China, particularly in the race for artificial intelligence. According to The Economic Times, the administration believes that reducing reliance on overseas chip manufacturers is crucial for national security.
Intel has been a significant beneficiary of the Biden administration’s CHIPS and Science Act, having received approximately $2.2 billion of the $7.8 billion pledged under the incentives program. Commerce Secretary Lutnick has reportedly characterized these grants as a “giveaway,” suggesting that converting them into Intel stock would better serve U.S. taxpayers, as stated by The Business Journal. These shares are expected to be non-voting, ensuring the government would not exert control over Intel’s operations.
While rare, it is not unprecedented for the U.S. government to become a significant shareholder in a prominent company. Intel has faced financial challenges, reporting losses in 2024 and the first half of 2025, according to its financial reports. The company has also been working to optimize its manufacturing footprint and has undertaken cost-cutting measures, including a 15% reduction in its core workforce.
