Today's Edition
San Jose, California (dpa)
The US government has become a major shareholder in the struggling chipmaker Intel.
Commerce Secretary Howard Lutnick announced on Friday that the United States now holds a 10% stake in the company.
According to an Intel statement, the stake is funded by $8.9 billion in subsidies for expanding its US production. Intel had already received just over $2 billion.
"This historic agreement strengthens US leadership in semiconductors, which will both grow our economy and help secure America's technological edge," Lutnick said in a statement posted on X.
Lutnick said a few days ago that the US government would receive non-voting shares. This would mean it could not directly influence management decisions at Intel.
Intel said in a statement that the US government will acquire 433.3 million primary shares at $20.47 each, giving it a 9.9% stake in the company.
This historic agreement strengthens US leadership in #semiconductors: @howardlutnick
— Aletihad English (@AletihadEn) August 23, 2025
Read more: https://t.co/2lhIUR9js4#AletihadNewsCenter #USA #Intel #Trump #technology pic.twitter.com/QHTAtT3ILl
The government will also hold a five-year warrant to purchase an additional 5% of Intel's shares at $20 each, exercisable only if Intel's foundry business falls below 51% ownership, according to the statement.
Intel shares rose about 5.5% to $24.80 in US trading on Friday.
US President Donald Trump, in comments made at the White House on Friday, praised the deal as something good for the company.
White House prefers tariffs
Trump has consistently criticised the subsidies for chip manufacturers, introduced under his predecessor Joe Biden to expand US production, as a waste of money.
He prefers high import tariffs, which he believes would encourage companies to manufacture their semiconductors in the United States.
Currently, high-tech chips, such as those used in smartphones, are predominantly produced in Asia. For this reason, the US and Europe have been attempting for several years to bring more production back to the West.
However, building factories takes years and costs tens of billions of dollars.
Under Trump, the US government already received a "golden share" during the takeover of US Steel by its Japanese rival Nippon Steel.
The deal requires approval from the president to relocate jobs outside the US or to close factories or make major acquisitions within the country.
Intel in trouble
Intel, which once dominated the semiconductor market, has been struggling with problems for years. In the field of chips for artificial intelligence, the graphics card specialist Nvidia has taken a leading position.
California-based Intel is facing increasing pressure in its traditional business of PC processors and chips for data centres. The company is attempting to establish a second pillar as a contract manufacturer for other semiconductor providers, in addition to producing its own chips.
However, progress has been slow. Plans for a large factory in the German city of Magdeburg were abandoned due to a lack of demand.
