US government takes 10 percent stake in Intel in exchange for money it was already on the hook for
The US government is taking a 10% stake in Intel in exchange for $8.9 billion in funding. Most of this money, $5.7 billion, comes from the remaining grants that Intel was supposed to receive under the Biden administration's CHIPS Act, while $3.2 billion is from the Secure Enclave program. President Trump announced the deal, saying it was negotiated to allow Intel CEO Lip-Bu Tan to "keep his job" after Trump previously called for Tan's resignation over his ties to China. The government's stake will be a passive ownership with no board representation or governance rights. The deal is part of the Trump administration's efforts to increase US technology and manufacturing leadership, and the president hinted at more such deals in the future.
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