The Trump administration said it is acquiring a 9.9% stake in Intel Corp., converting $8.9 billion of previously awarded government support into common stock. The transaction draws on $5.7 billion of unused grants under the CHIPS and Science Act and $3.2 billion from the Secure Enclave program, making Washington Intel’s largest shareholder without committing fresh federal cash. Under the terms disclosed by Intel, the Treasury will purchase 433 million newly issued shares at a 17.5% discount to Friday’s close and receive a five-year warrant that could lift its holding to 15% if exercised at $20 a share. The government will forgo a board seat but has agreed to vote in line with the company on most matters, retaining limited veto rights. President Donald Trump said the deal strengthens domestic semiconductor production and emerged from a recent White House meeting with Chief Executive Lip-Bu Tan. Supporters such as Senator Bernie Sanders argue taxpayers deserve a direct return on subsidies, while critics warn the unusual intervention blurs the line between public and private sectors and may face legal scrutiny because the CHIPS Act does not explicitly authorize equity conversions. Intel shares rose 5.5% on the news and traded more than one billion shares for the week, the heaviest volume since 2008. The rally follows SoftBank’s disclosure of a separate 2% stake and a 23% year-to-date gain. Even so, analysts interviewed by Reuters said the cash injection alone will not resolve manufacturing yield problems or attract external customers to the company’s advanced 14A process, challenges that have eroded Intel’s standing against TSMC and Nvidia.