U.S. Government Considers 10% Equity Stake in Intel via CHIPS Act Grants

The Trump administration is considering converting Intel's CHIPS and Science Act grants into a 10% equity stake in the company, potentially making the U.S. government its largest shareholder. At Intel's current market valuation, such a stake would be worth approximately $10.4 billion.

Commerce Secretary Howard Lutnick emphasized the administration's intent to ensure taxpayers receive a return on their investment, stating, "Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer?"

Intel has been awarded about $10.9 billion in CHIPS Act grants, including $7.9 billion to support domestic investments and $3 billion for semiconductor manufacturing related to national security.

The proposal remains under discussion, with no final decision made. Intel and the White House have not immediately responded to requests for comment.

In a related development, Japan's SoftBank Group announced a $2 billion investment in Intel, acquiring just under a 2% equity stake. This move is seen as a vote of confidence in Intel's strategic direction amid its ongoing efforts to regain technological leadership in the semiconductor industry.