The U.S. government has taken an unprecedented 10% stake in Intel under a deal with the struggling chipmaker and is planning more such moves, according to the Trump administration.

Washington

The U.S. government has acquired a 10% stake in Intel, becoming the company's largest shareholder. This move was facilitated using funds previously committed through the CHIPS Act and the Secure Enclave program, rather than new expenditures. According to official statements, the government purchased 433.3 million shares at $20.47 each, with the total value of the stake estimated at approximately $11 billion.

Both the White House and Intel confirmed that no new money was used for the acquisition, as the transaction was funded entirely by grants and awards already allocated to Intel. The president described the deal as beneficial for both the United States and Intel, emphasizing the importance of semiconductor manufacturing to national interests.

U.S. officially takes 10% stake in Intel

Friday night breaking news. It's on Intel. Intel stock is higher by about six percent. On news, the U.S. is going to, or maybe already has, taken a 10 percent stake in the company. Eamon Javers covering the story. Eamon joining us from the White House. Eamon, what do we know? Well, we know that the U.S. government already has taken that stake, according to officials, and the company itself now putting out a press release. Let's start with the president of the United States, though, who just put out a social media post just a couple of minutes ago. He says, it is my great honor to report that the United States of America now fully owns and controls 10 percent of Intel, a great American company that has an even more incredible future. I negotiated this deal with Lip Butan, the highly respected chief executive officer of the company. The president goes on to describe some details here of the deal. He says the United States paid nothing for these shares, and the shares are now valued at approximately $11 billion. This is a great deal for America and also a great deal for Intel. So, on that point of the president saying that the U.S. government paid nothing for the shares, we now have a release from the company itself. You see the rest of the tweet there from the president, building leading-edge semiconductors and chips, which is what Intel does, is fundamental to the future of the nation. Make America great again. Thank you for your attention to this matter. So, the press release, Brian, from Intel gives us some bullet points here in terms of how this deal has been structured. And it does look like the president is correct in the sense that there is no new money going into this deal. This is previously committed CHIPS Act money and previously committed funds from a program called Secure Enclave, which was a Biden-Harris administration program that committed $3-plus billion to Intel in those years. So, what Intel is saying here, if you can call up these bullet points, is that the government has agreed to purchase 433.3 million Intel shares, and the price they're paying is $20.47 a share. You can look at the current market and see how that shakes out. The equity stake is funded by the remaining $5.7 billion in grants that were previously awarded under the CHIPS Act. So, that's previously granted money. And then also $3.2 billion awarded to Intel as part of the Secure Enclave program, again, previously awarded money from the U.S. government. So, when the president says the U.S. government paid nothing, what he's saying is that money was already committed to the company. The company is saying here that, ultimately, this deal is now worth 9.9 percent of the company. And, Brian, our eagle-eyed folks on the CNBC news desk at CNBC Global Headquarters are calculating that the U.S. government is now the largest shareholder in Intel.

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