Intel and Trump Administration Forge Historic Partnership to Propel U.S. Tech and Manufacturing Leadership
In a landmark move set to redefine America’s technology and manufacturing landscape, Intel Corporation has announced a groundbreaking agreement with the Trump Administration to accelerate domestic semiconductor leadership. Under the terms of the deal, the U.S. government will invest $8.9 billion in Intel common stock, underscoring its confidence in the company’s pivotal role in advancing national priorities and bolstering the domestic semiconductor industry. This investment builds on Intel’s ongoing commitment to expand America’s resilient semiconductor supply chain, which already includes over $100 billion in strategic investments.
The equity stake will be funded through the remaining $5.7 billion in grants previously awarded but not yet disbursed under the CHIPS and Science Act, along with an additional $3.2 billion allocated to Intel as part of the Secure Enclave program. These funds will enable Intel to continue delivering on its obligations to provide trusted and secure semiconductors to the U.S. Department of Defense. Including prior CHIPS Act grants totaling $2.2 billion, the total government investment in Intel now stands at $11.1 billion, marking a historic collaboration between the public and private sectors.
A Bold Vision for American Innovation
As the only semiconductor company conducting leading-edge logic R&D and manufacturing within the United States, Intel is uniquely positioned to drive technological advancements that are critical to the nation’s economic and national security. Lip-Bu Tan, CEO of Intel, emphasized the significance of this partnership:
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made. President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working together to advance U.S. technology and manufacturing leadership.”
Howard Lutnick, U.S. Secretary of Commerce, echoed this sentiment, stating: “Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world. As more companies look to invest in America, this administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security.”
Details of the Investment Agreement
Under the agreement, the U.S. government will purchase 433.3 million primary shares of Intel common stock at $20.47 per share, representing a 9.9 percent stake in the company. This arrangement provides American taxpayers with a discounted price relative to current market values while allowing them to benefit from Intel’s long-term growth and success.
The government’s ownership will be passive, with no board representation or governance rights. Additionally, the government has agreed to align its voting with Intel’s Board of Directors on most shareholder matters, with limited exceptions.
To further incentivize Intel’s commitment to U.S. manufacturing, the government will receive a five-year warrant exercisable at $20 per share for an additional five percent of Intel common shares—but only if Intel ceases to own at least 51% of its foundry business.
Existing claw-back and profit-sharing provisions tied to the previously dispersed $2.2 billion CHIPS Act grant will be eliminated, ensuring permanency of capital as Intel advances its ambitious U.S. investment plans.
Strengthening America’s Semiconductor Ecosystem
Intel’s investments come amid a broader push by the Trump Administration to solidify U.S. leadership in technology and manufacturing. The company is currently undertaking a massive expansion of its domestic chipmaking capacity, investing over $100 billion across multiple U.S. sites. Its newest fabrication facility in Arizona is expected to begin high-volume production later this year, leveraging the most advanced semiconductor manufacturing process technology available domestically.
Since assuming the role of CEO in March, Lip-Bu Tan has implemented measures to strengthen Intel’s financial position, foster disciplined execution, and revitalize its engineering-first culture. Today’s agreement reinforces Intel’s broader strategy to position itself as a leader in next-generation technologies while supporting national priorities.
Industry Leaders Applaud the Partnership
Intel’s efforts to fortify the U.S. semiconductor ecosystem have garnered widespread support from leading technology companies.
- Satya Nadella, Chairman and CEO of Microsoft, praised the partnership: “The decades-long collaboration between Microsoft and Intel has pioneered new frontiers of technology and showcased the very best of American ingenuity and innovation. Intel’s continued investment in strengthening the U.S. semiconductor supply chain, supported by President Trump’s bold strategy to rebuild this critical industry on American soil, will benefit the country and broader technology ecosystem for years to come.”
- Michael Dell, Chairman and CEO of Dell Technologies, added: “The industry needs a strong and resilient U.S. semiconductor industry, and no company is more important to this mission than Intel. It’s great to see Intel and the Trump Administration working together to advance U.S. technology and manufacturing leadership. Dell fully supports these shared priorities, and we look forward to bringing a new generation of products to market powered by American-designed and manufactured Intel chips.”
- Enrique Lores, President and CEO of HP, noted: “We share Intel’s and the Trump Administration’s deep commitment to building a strong, resilient, and secure U.S. semiconductor industry. Intel’s continued investment in domestic R&D and manufacturing is integral to future innovation and will strengthen the partnership between HP and Intel for years to come. This is a defining moment for great American companies to lead the world in cutting-edge technologies that will shape the future.”
- Matt Garman, CEO of AWS, highlighted the importance of semiconductors to AI and cloud platforms: “Leading-edge semiconductors are the bedrock of every AI technology and cloud platform, making U.S. investment in this critical industry one of the most important technological, economic, and national security imperatives of our time. Intel plays a vital role as one of the country’s leading chip manufacturers, and we applaud the Trump Administration’s efforts to usher in a new era of American innovation in partnership with American companies.”
A Defining Moment for U.S. Technology
This historic agreement between Intel and the Trump Administration represents a monumental step toward securing America’s future as a global leader in semiconductor technology and manufacturing. By fostering collaboration between the government and private sector, the partnership ensures that the United States remains at the forefront of technological innovation while safeguarding national security interests. With Intel’s unwavering commitment to expanding domestic capabilities and the administration’s vision for a resilient semiconductor ecosystem, the stage is set for a new era of American ingenuity and prosperity.
PJT Partners served as Intel’s exclusive financial advisor in connection with this investment agreement.
