Trump: Intel Agrees to Sell 10 Percent Stake to US
On Monday, August 25, 2025, former U.S. President Donald Trump lauded the government’s acquisition of a 10 percent stake in Intel Corporation. He hailed the deal as a vital strategy to bolster the American economy and generate numerous job opportunities, emphasizing the chip manufacturer’s critical role in the nation’s domestic industrial strategy.
“I’d make deals like that for our Country all day long,” Trump declared in a post on Truth Social, as reported by CNBC. He dismissed critics of the agreement as “fools” who failed to grasp its profound benefits for American prosperity and employment.
The deal, first announced on Friday, August 22, 2025, involved the government purchasing a 9.9 percent stake in Intel. Valued at $8.9 billion (equivalent to Rp144 trillion), the shares were acquired at $20.47 each, notably below the day’s closing price of $24.80. Funding for this significant investment stemmed from two key sources: $5.7 billion (Rp92.6 trillion) from the CHIPS and Science Act fund, supplemented by $3.2 billion (Rp52 trillion) from the Secure Enclave program, both earmarked for expanding domestic chip manufacturing capabilities.
This strategic investment in Intel marks a pivotal first step towards the establishment of a U.S. sovereign wealth fund. Kevin Hassett, former Director of the National Economic Council (NEC), explained that such funds are commonly utilized by resource-rich nations to manage their investments. Trump had already laid the groundwork for this initiative by signing an executive order in February 2025.
Hassett cited Norway’s formidable $1.8 trillion (Rp29 quadrillion) fund as a successful model for reference. He further reminded the public that the U.S. government has historically held stakes in various companies, including Fannie Mae and Freddie Mac. Crucially, Hassett assured that despite the government’s newfound ownership, there would be no interference in Intel’s day-to-day operational management.
The government’s intervention came at a critical time for Intel, which had been navigating significant financial challenges. The company reported a net loss of $2.9 billion (Rp47.1 trillion) in Q2 2025, equating to a loss of $0.67 per share, with revenues stagnating at $12.9 billion (Rp209 trillion) compared to the previous year. Nevertheless, this direct government support immediately sparked market optimism.
Following the announcement, Intel’s stock value surged by an impressive 28 percent throughout August 2025. This significant leap reflected investor confidence in Intel’s capacity to rebound and fortify its standing within the national chip industry. The government’s endorsement is widely perceived as a positive signal for the future of semiconductor production in the United States.
Intel CEO Lip-Bu Tan underscored the company’s unwavering focus on research and innovation. “As the only semiconductor company conducting leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technology is made in America,” Tan stated, as quoted by Fox Business. This declaration firmly reinforces Intel’s ambition to maintain its technological leadership domestically.
Despite the enthusiasm from some quarters, the government’s move to acquire Intel shares has not been without opposition, particularly from certain politicians. Representative Thomas Massie, for instance, contended that the purchase lacked a proper legal basis.
“There’s nothing in the CHIPS Act that allows the U.S. government to buy a stake in Intel,” Massie asserted. However, Hassett clarified that this agreement does not represent new government control over the market. He argued that the CHIPS Act itself already constituted a form of intervention through grants, and this new scheme merely transforms those grants into an equity position. Hassett views this mechanism as more transparent and better aligned with long-term value creation.
Larry Lindsey, also a former NEC Director, echoed a similar perspective. “Government intervention in the free market economy occurred when the CHIPS Act was passed. Remember, that was a grant. And what President Trump did was convert that grant into an equity position,” Lindsey explained on “Mornings With Maria.” Lindsey further noted that this policy aligns with broader strategies of tariffs and onshoring, aimed at repatriating manufacturing industries back to the U.S.
Summary
Former President Donald Trump lauded the U.S. government’s acquisition of a 9.9 percent stake in Intel Corporation for $8.9 billion, announced on August 22, 2025. This strategic deal, funded by the CHIPS and Science Act and Secure Enclave program, aims to bolster the American economy and create jobs. It marks a pivotal first step towards establishing a U.S. sovereign wealth fund, aligning with national industrial strategies.
The government’s investment came as Intel navigated financial challenges, yet it sparked immediate market optimism, with Intel’s stock surging 28 percent in August. While some politicians questioned the legal basis, former NEC directors clarified that this move converts existing CHIPS Act grants into an equity position, without interfering in Intel’s daily operations. This reinforces Intel’s commitment to domestic research, development, and manufacturing.