President Donald Trump said the federal government has acquired roughly a 10% stake in Intel Corp. by converting previously approved subsidies into common stock, an unprecedented equity move by Washington into a major U.S. technology company. The $8.9 billion transaction draws on $5.7 billion in unpaid grants awarded under the 2022 CHIPS Act and $3.2 billion from the Secure Enclave program, leaving no fresh taxpayer funding, according to administration officials. Treasury will purchase about 433 million Intel shares at $20.47 each—around a $4 discount to Friday’s close—giving the stake an estimated market value of $11 billion. The holding is passive, carries no board seat and requires the government to vote with management except in limited cases. The agreement also grants Washington a five-year warrant to buy an additional 5% of the company at $20 should Intel lose control of its foundry business. Commerce Secretary Howard Lutnick said the deal ensures taxpayers “get a return” on public subsidies and signaled that other chipmakers receiving federal support could face similar demands. Treasury Secretary Scott Bessent added that the aim is to stabilize domestic semiconductor production rather than mandate federal purchasing of Intel products. Intel Chief Executive Officer Lip-Bu Tan welcomed the arrangement, saying it would bolster U.S. technology leadership as the company works to reverse its slide in market share and profitability; Intel reported an $18.8 billion loss last year. The government’s move follows SoftBank Group’s separate $2 billion equity purchase earlier in the week, adding to the cash cushions available for Intel’s foundry expansion. The structure has drawn scrutiny from legal scholars, who note the government opted for common rather than preferred shares. Boston College law professor Brian Quinn called the choice “a colossal waste of time” compared with securities that guarantee dividends, while Duke University’s Timothy Meyer described the intervention as rare outside a systemic financial crisis. Intel shares gained 5.5% in regular trading Friday and rose another 1% after hours on news of the deal.