Trump says Intel agreed to give U.S. government 10% stake

By Admin

23 Aug, 2025

In a move that could reshape the relationship between Washington and America’s tech giants, U.S. President Donald Trump announced on Friday that Intel has agreed to give the federal government a 10 percent stake in the company, valued at approximately $10 billion. The announcement, reported across multiple U.S. media outlets, marks one of the most extraordinary interventions of the federal government into a private technology corporation.

Trump’s Negotiation with Intel

Speaking in the Oval Office, Trump said he directly told Intel CEO Lip-Bu Tan, “I think you should pay us 10 percent of your company.” According to reports from The Washington Post, the Intel chief agreed to the proposal during an event on Friday. Trump described the deal as beneficial to both sides, calling it “a great deal for them” and “a great deal” for the United States.

A Shift in Government-Industry Dynamics

The arrangement is intended to boost semiconductor manufacturing within the U.S., though it remains unclear how the administration plans to participate in Intel’s decision-making. CNN noted that the Trump administration is exploring similar opportunities to acquire stakes in other companies operating in critical industries. This could signal a broader shift toward direct government involvement in strategic sectors of the economy.

Comparisons to Past Interventions

If carried out, the Intel stake would mark one of the most significant government interventions in corporate America since the 2008 financial crisis, when Washington rescued Chrysler and General Motors with tens of billions of dollars in aid. The New York Times pointed out that such interventions have historically been reserved for systemic economic collapses or wartime circumstances, making the Intel deal unprecedented in modern times.

Reviving Intel’s Competitive Edge

Trump framed the decision as a way to revitalize Intel, arguing that the company has fallen behind its competitors in the semiconductor race. “Intel has been left behind,” he said, as quoted by Bloomberg. With partial government ownership, the administration hopes to push the company toward reclaiming its leadership in chip manufacturing a sector that has become central to both economic and national security concerns.

Breaking Traditional Norms

Analysts note that government ownership of a major publicly traded tech firm breaks long-standing norms in U.S. policy. Bloomberg reported that such intervention is typically viewed as acceptable only under extraordinary circumstances, such as war or severe financial crisis. This move comes despite Intel already being the largest recipient of funding from former President Joe Biden’s CHIPS Act, which offered grants and tax breaks to encourage domestic semiconductor production.

Looking Ahead

Trump suggested that the Intel deal could be just the beginning, signaling his willingness to pursue more such agreements across industries critical to U.S. economic and national security interests. Whether this strategy will strengthen America’s technological edge or disrupt the delicate balance between free markets and government oversight remains to be seen.