WASHINGTON : The United States government will take nearly a 10 per cent equity stake in Intel, marking one of the largest federal interventions in the technology sector. The move is aimed at stabilising the struggling chipmaker and safeguarding America’s leadership in semiconductor production.

President Donald Trump announced that the government will convert about $8.9 billion in grants previously allocated to Intel into company shares. The deal will give Washington ownership of 433.3 million shares priced at $20.47 each, a figure below Intel’s recent trading price.

The stake will be held strictly as a passive investment, meaning the government will not occupy board seats or exercise governance rights. Officials framed the arrangement as a strategic safeguard rather than a takeover, ensuring that advanced chip manufacturing remains rooted in the U.S.

Intel’s chief executive, Lip-Bu Tan, welcomed the move, describing it as a partnership that will help the company “deliver next-generation semiconductor capacity in the United States, strengthening both national security and economic competitiveness.”

The decision underscores the government’s growing role in supporting the domestic chip industry, which has faced mounting financial pressures and intense global competition.