The US buys $8.9 billion worth of Intel shares to support chip production

President of the United States Donald Trump announced that the government will acquire a 9.9% stake in Intel as part of a deal that involves investing public funds from grants in exchange for a stake in the company. About writes Reuters.

Under the terms of the deal, the US will invest $8.9 billion by buying 433.3 million Intel shares at $20.47 per share, about $4 less than the stock price at the stock exchange's close on Friday ($24.80).

Funding comes from $5.7 billion in unspent Chip Act grants, launched under the president's watch Joe Biden and $3.2 billion under the Secure Enclave program.

Trump noted that the agreement guarantees Intel about $10 billion to build and modernize factories in the United States.

Analysts believe that such a move could give the company the financial space to rebuild its loss-making microchip division.

However, Intel has been losing market share to competitors, such as Nvidia and AMD, for several years now, and has had problems with sales of new processors. In 2024, the company suffered a loss of $18.8 billion for the first time since 1986.

• On August 7, Trump said that Intel CEO Lip-Bu Tan should resign immediately because of alleged ties to China. In response, the company's CEO said that has full support of the company's board of directors.
• On August 15, Bloomberg reported that the Trump administration may buy a stake in Intel.