The U.S. government has become the new principal shareholder of semiconductor company Intel, after acquiring a 9.9% stake valued at more than $11 billion, making it the company’s largest individual investor. The transaction was announced by President Donald Trump and involves the conversion of federal subsidies allocated under the CHIPS and Science Act and the Secure Enclave program — funds that had been approved but not yet disbursed — allowing the state to transform them into equity capital.
The acquired stake is passive, meaning the government will not have representation on Intel’s board of directors nor exercise control over corporate decisions, although it has committed to voting in line with the company’s recommendations on most strategic issues. Intel, for its part, warned in an official statement that the move could generate adverse effects such as difficulties in closing international sales, risks of losing future subsidies, and potential dilution of current shareholders.
Nonetheless, it acknowledged that the deal strengthens its liquidity and reinforces its ties with Washington. The move has sparked mixed reactions in the political sphere. While some Republican lawmakers described the maneuver as excessive state intervention bordering on socialism, progressive leaders like Bernie Sanders endorsed it as a legitimate way to ensure returns for taxpayers after years of public subsidies.
Following the news, Intel shares rose nearly 6% in the stock market, reaching $24.80 compared to the estimated purchase value of $20.47, reflecting initial investor confidence in the measure. However, analysts caution that although the capital injection provides short-term financial stability, it does not guarantee the recovery of Intel’s foundry business, which continues to face fierce competition and lacks a solid customer base to sustain long-term viability.
