Sat Aug 23 05:02:14 UTC 2025: Here’s a summary and news article based on the provided text:

**Summary:**

The U.S. government, under President Trump, is taking a 10% equity stake in struggling chipmaker Intel for $8.9 billion. This move, funded through CHIPS Act grants and Secure Enclave program funds, is the latest in a series of unusual government interventions in corporate America. The deal follows a meeting between Trump and Intel CEO Lip-Bu Tan, who was initially pressured to resign due to ties with Chinese firms. While the investment aims to bolster Intel’s foundry business and secure critical technology, critics worry about the implications of government interference in private enterprise. Intel faces challenges in attracting customers and catching up with industry leaders like TSMC, even with government support.

**News Article:**

**U.S. Government Acquires 10% Stake in Intel in Unprecedented Intervention**

**Washington D.C. – August 23, 2025** – In a move that has sent ripples through the tech industry and raised eyebrows across the political spectrum, the U.S. government, led by President Donald Trump, announced yesterday that it is acquiring a 10% stake in chipmaking giant Intel.

The deal, valued at $8.9 billion, will see the U.S. government purchase 433.3 million shares of Intel at $20.47 each, a discount from the company’s closing share price on Friday. Funding will come from previously allocated CHIPS Act grants and the Secure Enclave program. Intel shares dipped slightly in after-hours trading following the announcement.

According to President Trump, the deal originated from a meeting with Intel CEO Lip-Bu Tan earlier this month. Tan, facing pressure to resign due to concerns about his connections with Chinese firms, seemingly negotiated the investment in exchange for maintaining his position. “He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion,” Trump stated Friday.

Commerce Secretary Howard Lutnick confirmed the deal on X, stating, “The United States of America now owns 10% of Intel.”

This move is the latest in a series of unusual government interventions in corporate America under the Trump administration. Recent examples include allowing Nvidia to sell AI chips to China in return for a percentage of sales, becoming a major shareholder in a rare earth mining company, and securing a golden share in the Nippon Steel acquisition of U.S. Steel.

While the administration frames the Intel investment as a critical step towards securing U.S. leadership in semiconductor manufacturing and reviving Intel’s struggling foundry business, critics warn of the potential downsides. Concerns have been raised about the potential for political influence in corporate decision-making and the creation of new categories of corporate risk.

“Intel’s problems are beyond a cash infusion,” said Daniel Morgan, senior portfolio manager at Synovus Trust. He emphasized the need for Intel to address its technological shortcomings relative to competitors like TSMC.

While the government stake is designated as non-voting, concerns remain about the long-term implications of such deep government involvement in the private sector. The deal underscores the Trump administration’s aggressive approach to national security and its willingness to intervene directly in the market to achieve strategic goals.

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