The US government has taken an equity stake in Intel Corp (NASDAQ:INTC, ETR:INL) as part of an agreement designed to ensure the chipmaker retains control of its manufacturing division, known as its foundry, Intel’s chief financial officer said on Thursday.
Intel CFO David Zinsner told investors that the deal, negotiated under President Donald Trump’s administration, aims to deter the company from selling its foundry business, a move seen as critical to maintaining US leadership in semiconductor production.
Under the arrangement, the US has invested about $8.9 billion in Intel, converting some grants from the CHIPS Act into equity.
The investment gives the government a stake of roughly 9.9%, with an option to increase its holding to 14.9% through a warrant if Intel’s ownership of its foundry falls below 51%.
Zinsner described the warrant as a safeguard provision that effectively functions as a “golden share,” preventing a transfer of control of Intel’s chipmaking capabilities.
“I don’t think there’s a high likelihood that we would take our stake below 50%,” he said. “So ultimately, I would expect [the warrant] to expire worthless.”
The government’s shares were purchased at $20.47 each, below market price, and the total public investment connected to Intel now stands at about $11.1 billion, including prior funding.
While the government does not hold board seats, it is aligned to vote with Intel’s board on shareholder matters.
White House Press Secretary Karoline Leavitt said Thursday that details of the agreement were still being finalized.
“The t’s are still being crossed. The i’s are still being dotted. These — you know — it’s very much still under discussion,” she said.
She added that the deal was proposed by the president and is being implemented through the Department of Commerce.
Intel declined to comment.
The transaction marks a rare instance of direct government equity ownership in a US technology company and reflects Washington’s broader effort to reduce reliance on foreign semiconductor suppliers.