Trump Claims Intel Approved 10 Percent Stake Acquisition

Please note, this article does not provide investment advice. The author does not hold any positions in the stocks mentioned.

Earlier today, former President Donald Trump shared his thoughts on the US government’s equity agreement with Intel, calling it a “great deal.”He indicated that similar arrangements could be explored with other semiconductor companies. Today, Intel’s CEO, Lip-Bu Tan, alongside Trump, is expected to elaborate on the specifics of this equity agreement during a dedicated event at the White House.

As has been extensively reported, the Trump administration aims to acquire a 10% equity stake in Intel. This move involves converting $7.9 billion in grants intended for Intel, allocated under the CHIPS Act, into equity. This financial maneuver is designed to incentivize the relocation of chip manufacturing back to the United States. Additionally, the administration plans to utilize the $3 billion grant Intel received through the Pentagon’s Secure Enclave program.

U. S.Commerce Secretary Howard Lutnick recently mentioned that the administration might pursue equity stakes in smaller semiconductor firms, excluding major players like TSMC and Micron. This is particularly relevant following TSMC’s reported reluctance to convert its recent CHIPS Act award of $6.6 billion into equity, indicating possible tensions within the industry.

Details Surrounding the Trump Administration’s Deal with Intel

*TRUMP: INTEL SAID YES TO 10% STAKE*TRUMP: THINK IT’S A GREAT DEAL*TRUMP: WILL DO MORE DEALS LIKE THAT

— *Walter Bloomberg (@DeItaone) August 22, 2025

According to reports from the Wall Street Journal, the U. S.government is set to obtain a 9.9% stake in Intel, but this will not include a seat on the board or any significant governance oversight.

Bank of America (BofA) has recently highlighted that the primary benefit of this deal for Intel is the enhancement of its “U. S.-based manufacturing.”This is particularly critical as both new and established fabless customers will likely increase competition to bolster their “made-in-the-U. S.”initiatives.

Notably, SoftBank has recognized this potential as well, committing to invest $2 billion in Intel to tap into the growing field of “semiconductor innovation in the United States.”

However, while BofA recognizes the opportunities this deal presents for Intel, it warns of several significant drawbacks. These include a potential 10% dilution of existing shareholders, a lack of immediate benefits, increased pressure to complete high-priority projects like the overdue Ohio fab, and probable intensified scrutiny from Chinese customers, who accounted for approximately 29% of Intel’s total sales in FY24.

We will continue to update this article with relevant information as it becomes available.

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