Trump's shifting position towards Intel's CEO, Lip-Bu Tan, who is seen as having conflicts of interest, ignites discussion about potential government ownership in the chipmaker company
In a significant development, the United States government has agreed to purchase a stake in Intel, one of the world's leading semiconductor manufacturers. The historic deal, announced on August 23, 2025, involves the acquisition of 433.3 million primary shares of Intel common stock at $20.47 per share.
The move is aimed at accelerating American technology and manufacturing leadership. With this investment, the federal government is expected to gain influence over Intel's strategic decisions, bolster domestic semiconductor production capacity, and strengthen U.S. technological competitiveness globally. The deal is also intended to reduce reliance on foreign suppliers, enhance national security around critical technology, and support innovation in semiconductor manufacturing within the United States.
The news was first reported by Bloomberg. The agreement comes after a series of meetings between Intel CEO Lip-Bu Tan and members of the Trump Administration, including a face-to-face discussion on August 11, 2025. Tan was appointed as the CEO of Intel earlier this year to "restore Intel's position as a world-class products company."
However, the potential purchase of a stake in Intel is not without controversy. Tan has faced accusations of being "conflicted" due to his relationship with Cadence Design Systems, a company that recently pled guilty to unlawfully exporting semiconductor design tools to a restricted PRC military university. Trump's accusation stems from this relationship, and Tan responded to the call for his resignation with a letter reaffirming his love for the United States and his commitment to leading Intel.
Despite the controversy, Intel issued a positive statement regarding the meeting, referring to it as a "candid and constructive discussion." The company also shared plans to work with the Trump administration, though no details were shared. Tan, in his letter, discussed his 40+ years of industry experience and diverse relationships, including his relationship with Walden International and Cadence Design Systems.
The sudden departure of former Intel CEO Pat Gelsinger preceded Tan's appointment. Intel, under Tan's leadership, has faced repeated delays in the construction of an Ohio plant, with the first unit now expected to be operational around 2030-2031. Trump, in a post on Truth Social, stated that US cabinet members and Tan will make suggestions over the next week.
The potential purchase of a stake in Intel comes from unnamed sources and there is no guarantee that an agreement will be made. However, if successful, this deal could mark a significant shift in the U.S.'s approach to domestic semiconductor production and global technological competitiveness.
- The purchase of a stake in Intel, a leading hardware manufacturer, could lead to updated software within the company, potentially impacting desktop and office productivity.
- The investment in Intel, a key player in the technology industry, might have implications for the business sector, possibly fostering larger growth and competitiveness.
- The finance industry might also be influenced by the deal, as Intel's financial stability plays a crucial role in semiconductor manufacturing, a cornerstone of the aerospace and defense industries.
- The increased production capacity of domestically manufactured semiconductors could benefit various hardware industries, such as the gaming industry, with console manufacturers like Xbox remaining significant consumers.
- The strategic decisions made by Intel, now under the influence of the federal government, could reshape the semiconductor industry, potentially spawning new innovations and advancements.
- The long-term consequences of the potential stake purchase in Intel could significantly affect U.S. technological competitiveness, potentially solidifying American leadership in manufacturing and technology for years to come.
