The US government has acquired a 10% stake in Intel through a US$8.9 billion (RM39.3 billion) investment, marking one of the most significant federal interventions in a private American technology company. The purchase, announced jointly by the Trump administration and Intel, involves the government buying 433.3 million new shares of Intel common stock at US$20.47 (RM90.48) each.
The investment is being funded by US$5.7 billion (RM25.2 billion) in unspent CHIPS and Science Act grants and US$3.2 billion (RM14.1 billion) from the Secure Enclave programme, both of which had already been allocated to Intel. Combined with US$2.2 billion (RM9.7 billion) in previous CHIPS grants, the government’s total support for Intel now stands at US$11.1 billion (RM49.1 billion).
Under the agreement, it is revealed that the US government’s stake will be passive. It will not take board seats or gain governance rights but has pledged to vote alongside Intel’s directors on shareholder matters, except in limited circumstances. The deal also includes a five-year warrant allowing the government to purchase an additional 5% of Intel shares at US$20 (RM88.40) per share, exercisable only if Intel’s control of its foundry business drops below 51%.
President Donald Trump, who announced the agreement on his Truth Social platform, described the deal as “a great deal for America and a great deal for Intel.” He added that semiconductors are “fundamental to the future of our nation,” framing the move as part of the US effort to strengthen its position against China in the global race for artificial intelligence and advanced computing leadership.
Meanwhile, via an official statement, Intel said the arrangement will help reinforce domestic semiconductor production and support its role in supplying secure chips to the US Department of Defense. Its CEO Lip-Bu Tan said the government’s investment reflects “confidence in Intel to advance key national priorities” and reiterated the company’s commitment to ensuring advanced technologies are manufactured in the United States.
On a related note, SoftBank Group earlier this week announced a US$2 billion (~RM9.3 billion) equity stake in Intel. The Japanese investment giant announced that it will purchase the semiconductor giant‘s common stock at US$23 per share through a primary issuance, giving it just under a 2% holding.
(Source: Intel [official website] / NBC)
