News Summary

In a significant move, the US government has acquired a 10% equity stake in the American chipmaker Intel. This decision was announced by US President Donald Trump and Commerce Secretary Howard Lutnick, marking an unusual intervention by the government in corporate affairs. The deal is valued at approximately $10 billion, equivalent to the amount Intel is set to receive under the Chips and Science Act to fund the construction of chip plants in the US. Intel, which has been facing financial challenges and recorded a substantial loss in 2024, sees this as a crucial step to revitalize its business. The move follows previous government involvement in corporate deals, such as allowing Nvidia to sell chips to China in exchange for a share of sales and the Pentagon’s acquisition of shares in a mining company. While this stake is non-voting, it is intended to support Intel’s efforts to compete with global leaders like TSMC. The announcement comes amidst a broader push by the Trump administration to bolster US chip manufacturing, with Intel CEO Lip-Bu Tan at the helm of the company’s turnaround efforts.