President Donald Trump said Friday that the United States will take a roughly 10% stake in Intel, converting outstanding federal subsidies into equity in the embattled chipmaker. The government will buy about 433.3 million newly issued shares at $20.47 apiece, an $8.9 billion transaction that makes Washington Intel’s largest shareholder. The stake is funded with $5.7 billion in grants Intel was awarded but had not yet received under the 2022 CHIPS and Science Act and $3.2 billion from the Secure Enclave national-security program. Commerce Secretary Howard Lutnick said the investment will be passive, with no board seat, and that the government has agreed to vote with Intel’s directors except in limited circumstances. The agreement also gives the Treasury a five-year warrant to buy a further 5% of the company at $20 a share if Intel loses majority control of its foundry unit. Talks on the grants-for-equity swap leaked on 18 August and followed a broader White House review of converting semiconductor subsidies into ownership stakes. Earlier this week SoftBank committed to invest $2 billion in Intel, underscoring the company’s need for fresh capital. Intel stock gained 5.5% to $24.80 during Friday trading and rose another 1% after hours once the deal was confirmed. The administration argues that taking an equity position will give taxpayers a direct return while accelerating domestic chip production as competition with China intensifies. Critics counter that the move represents an unusual level of peacetime government intervention in corporate affairs. Intel, which recorded an $18.8 billion loss in 2024 and lags rivals in advanced manufacturing, said the funds will help finance new U.S. fabrication plants and revive its foundry ambitions.