President Donald Trump sealed a deal that gives the U.S. government a nearly 10% stake in Intel, part of an unconventional bid to reinvigorate the beleaguered company and boost domestic chip manufacturing.
Under the agreement, the U.S. will receive 433.3 million shares of common stock — representing 9.9% of the fully diluted common shares in Intel — according to a statement from the company. The $8.9 billion investment will be funded by grants from the U.S. Chips and Science Act and Secure Enclave program that had previously been extended but not yet paid, Intel said.
Together with the $2.2 billion in Chips Act money that Intel already received, the investment totaled $11.1 billion. The shares are nonvoting, and there is no board seat for the U.S. government.
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