Chip industry: USA completes state entry into Intel

The US government is acquiring a nearly 10 percent stake in the struggling chip company Intel for $8.9 billion. Commerce Secretary Howard Lutnick officially confirmed this over the weekend. "The United States of America now owns 10 percent of Intel," he wrote on the X platform. It is a "fair agreement for Intel and for the American people." Intel shares fell 1.2 percent in after-hours trading on Friday.

The government is acquiring the 433.3 million shares with funds from $5.7 billion in unpaid grants from the so-called Chips Act, as well as $3.2 billion awarded to Intel for the Secure Enclave program. The purchase price of $20.47 per share is about four dollars below Friday's closing price of $24.80. Lutnick stated earlier this week that the stake would not carry voting rights. The government therefore could not dictate how the company should conduct its business.

The current agreement represents a reversal by Trump. He had recently demanded Tan's resignation because of his business dealings with China. "He came because he wanted to keep his job, and he ended up giving us ten billion dollars for the United States . So we made ten billion dollars," Trump said of his most recent meeting with Tan on August 11.

The investment in Intel is the latest in a series of unusual agreements between the US government and companies. In return for export permits for certain chips to China, the US government receives 15 percent of the Chinese manufacturer Nvidia's sales. Furthermore, the Pentagon is to become the largest shareholder in the mining company MP Materials in order to increase the production of rare earth magnets. In the takeover of US Steel by Japan's Nippon Steel, the government negotiated a "golden share" with certain veto rights for itself. The far-reaching interventions in corporate affairs have drawn criticism. They fear that Trump's actions will create new business risks.

The government's entry comes amid a far-reaching restructuring at Intel. CEO Tan, who took office in March, is tasked with getting the world's formerly largest chip manufacturer back on track, which reported an annual loss of $18.8 billion in 2024. Analysts say the government support gives Intel more leeway in its restructuring. However, experts say Intel's problems go beyond the need for a cash injection. Japanese technology investor Softbank agreed on Monday to invest $2 billion in Intel. However, the US government is not currently considering investing in chip companies TSMC and Micron. A White House official said there are no such plans, as these companies are already expanding their investments in the US.