U.S. President Donald Trump announced on Friday that Intel CEO Lip-Bu Tan has agreed to grant the U.S. government a 10% stake in the semiconductor giant, valued at approximately $10 billion. The announcement, reported by multiple U.S. media outlets, marks an unprecedented federal intervention into a private tech firm, raising questions about the government's role in strategic industries.
"I think you should pay us 10 percent of your company," Trump was quoted by The Washington Post as saying during a conversation with Tan. The president framed the deal as mutually beneficial, stating in the Oval Office, "I think it's a great deal for them. And I think it's a great deal," according to CNN.
The agreement aligns with the Trump administration's push to bolster domestic semiconductor manufacturing, a sector critical to national security and global tech competitiveness. However, details on how the government will influence Intel's decision-making remain unclear. Analysts compare the move to the 2008 auto industry bailout, with The New York Times noting it could rank among the largest government interventions in a U.S. company since then.
Intel, the largest beneficiary of the CHIPS Act under former President Joe Biden, has received significant federal grants and tax breaks to expand U.S. production. Trump emphasized revitalizing the company, claiming "Intel has been left behind" compared to rivals, as reported by Bloomberg. Critics, however, warn that such equity stakes challenge long-standing norms of government non-intervention outside crises like war or economic collapse.
The administration is reportedly considering similar deals in other critical industries, signaling a potential shift in U.S. economic policy. For global investors and tech analysts, the development underscores growing geopolitical tensions over semiconductor supply chains and their implications for markets across Asia and beyond.
