The Trump administration is converting roughly $10.9 billion in CHIPS Act grants into an equity stake of about 10% in Intel Corp., according to people familiar with the matter. At current market levels the holding would be valued near $10 billion, making Washington the chipmaker’s largest shareholder and marking one of the most direct U.S. interventions in a major listed company since the financial-crisis bailouts. News of the talks sent Intel shares down as much as 5.5% on Aug. 18, but the stock rebounded about 6% after President Donald Trump told reporters on Friday that the company had “agreed” to the arrangement, which he called “a great deal.” The Wall Street Journal reported that the government will refrain from taking a board seat or exercising an active governance role, leaving the stake non-voting. A formal announcement is expected later today at the White House, where Trump and Chief Executive Officer Lip-Bu Tan are slated to outline the agreement. The transaction extends the administration’s strategy of taking equity positions in strategically important industries—following recent deals in rare-earth mining—and is intended to shore up domestic semiconductor capacity as Intel struggles with heavy foundry losses and delays at its $20 billion Ohio fabrication project.