“Intel stock keeps climbing. I’m very proud of that company as I have played a role in generating over 30 billion dollars for the United States in just 90 days from that stock,” Trump shared on Truth Social.
“There are other investments where I’ve also succeeded by acquiring portions of equity for support. Kudos to Intel for their outstanding work, and more importantly, congratulations to the American people for making such a wise investment!” he added.
Last August, the President revealed that Intel had agreed to offer the US government a 10% stake. The government invested $8.9 billion to obtain 433.3 million shares at a price of $20.47 each. Of this, $5.7 billion was sourced through grants under the CHIPS and Science Act, while the remaining $3.2 billion was allocated through a separate initiative focused on enhancing secure chip manufacturing, as stated by Intel.
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Funds previously earmarked by the Biden administration were reallocated, with Commerce Secretary Howard Lutnick highlighting the investment’s significance in bolstering domestic semiconductor production.
When the investment was made, Trump announced on Truth Social, “The United States paid nothing for these shares, and they are now valued at approximately $11 billion. This is a tremendous opportunity for America and a remarkable deal for Intel.”
The agreement includes an option for the US government to acquire an additional 5% of Intel if the company relinquishes its controlling stake in its foundry operations. The chipmaker noted that the arrangement does not grant board membership or governance authority to Washington.
As reported by Bloomberg, in addition to supporting Intel, the Trump administration has rolled out more than a dozen initiatives aimed at strengthening crucial industries, such as rare earth elements, steel production, and nuclear energy. The President is also evaluating a possible rescue plan for Spirit Airlines, which could lead to the US government holding up to 90% of the airline after its bankruptcy.
