The extraordinary development follows a meeting between CEO Lip Butane and Trump after calling for the removal of the tongue.
The US government will take 10% stake in Intel under an agreement with a struggling chipmaker, and President Donald Trump said it will show the latest, extraordinary intervention in corporate issues.
Trump announced on Friday. Intel declined to comment, with its shares rising more than 6%.
This development was sparked by Trump’s demand for Intel’s resignation over relations with Chinese companies, following a meeting between CEO Rip Beau Tan and Trump earlier this month.
“He walked over, wanting to continue his job and ultimately gave the US $1 billion,” Trump said Friday.
The move showed a clear change in direction and was the main trust vote for US chipmakers who were troubled mid-turn-around following a $2 billion capital injection from SoftBank Group.
Federal support could give Intel more room for breath to revive its lossy casting business, analysts said, but it still struggles with the weak product roadmap and challenges of attracting customers to new factories.
When Trump met Tan on August 11th, he took an unprecedented approach to national security.
The US President has pushed for billions of dollars in government in semiconductors and rare earths, including payment agreements with NVIDIA and arrangements with rare earth producer MP materials to secure critical minerals.
Tan, who worked as a top job at Intel in March, is tasked with turning the US chip-making icon, which lost $18.8 billion a year in 2024. First loss since 1986.
Earlier this week, US Sen. Bernie Sanders supported the plan. He and Sen. Elizabeth Warren previously said that the US Treasury should receive warrants, stocks, or senior debt instruments from companies that received government grants like Intel had under the Chips and Science Act of 2022, attempting to lure chip production from Asia and boost the US domestic semiconductor output at 39bn $39bn.
An official announcement of the investment is expected later on Friday.
