The US government's Intel deal explained

"Under the terms of the long-rumored deal, the Trump administration has bought a 9.9% stake in Intel for $8.9 billion - noted that works out to $20.47 per share, a discount of about $4 from the company's Friday closing price. The share purchase will be paid for via two existing grants - agreed but not yet paid - awarded by the previous administration: $5.7bn from the CHIPS act and $3.2bn from the Secure Enclave program."

"Or, as President Trump said in a post on Truth Social: "The United States paid nothing for these shares, and the shares are now valued at approximately $11 billion dollars." The nature of those grants requires the funding be spent in the US. Similarly, as part of the deal, the grants are converted into an equity stake, but the terms require the money to be spent inside the US in ways aligned with CHIPS and Secure Enclave."

The US government acquired a 9.9% stake in Intel for $8.9 billion, at $20.47 per share, funded by $5.7bn from the CHIPS Act and $3.2bn from the Secure Enclave program. The transaction converts existing grants into equity while obligating the funds to be spent in the United States and aligned with CHIPS and Secure Enclave objectives. The deal excludes a previously paid $2.2bn tranche of CHIPS grants. Intel states it conducts leading-edge logic R&D and manufacturing in the US and is committed to American-made advanced technologies. The move occurs amid tariffs and tensions with China and follows Intel’s recent financial losses and leadership changes.

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