The U.S. has acquired a 10% stake in Intel, becoming its largest shareholder. The move, confirmed on August 22, follows discussions between Intel’s CEO and President Trump over concerns regarding China ties.

Arkansas Senator Cotton’s letter prompted Trump to suggest Intel’s CEO resign. Discussions led to the U.S. considering an ownership stake in Intel.

The U.S. government holds 433.3 million Intel shares at $20.47 per share, totaling $8.9 billion. The purchase was funded by grants under the CHIPS Act and the Secure Enclave program.

Treasury Secretary Bessent explained the investment in Intel as a matter of national security. The U.S. aims to ensure a domestic chip supply and reduce reliance on Taiwan for advanced chips.

Intel CEO Tan expressed gratitude for the investment, while Commerce Secretary Lutnick emphasized the importance of reinforcing America’s AI dominance and national security.

The U.S. will have a passive investment in Intel without board representation. Additionally, the government will hold warrants to acquire another 5% of Intel shares if certain conditions are met.

Intel’s stock closed at $24.80 on August 22, up 5.53%. The investment aims to support Intel’s plans to build a semiconductor foundry in the U.S. under the CHIPS Act regulations.

Read more at Yahoo Finance: The US Could Wind Up Owning More Than 10% of Intel