US Govt. Takes 10% Stake in Intel

White House officials previously told CNBC that Trump and Tan will meet on Friday afternoon. Lutnick’s post included a photo with Tan.

The marks the latest example of a distinct shift in U.S. industrial policy, with the government taking an active role in the private sector. Lutnick told CNBC this week that the U.S. government was seeking an equity stake in Intel in exchange for CHIPS Act funds.

Earlier this week, Intel announced another major backer, when SoftBank said it would make a $2 billion investment in the chipmaker, equal to about 2% of the company.

Intel’s technology is seen as lagging Taiwan Semiconductor Manufacturing Company, which makes chips for companies including Apple, Nvidia, Qualcomm, AMD, and even Intel.

Intel has been spending billions of dollars to build a series of chip factories in Ohio, an area the company previously called the “Silicon Heartland,” where Intel would be able to produce the most advanced chips, including for AI.

But in July, Tan said in a memo to employees that there would be “no more blank checks,” and that it was slowing down the construction of its Ohio factory complex, depending on market conditions. Intel’s Ohio factory is now scheduled to start operations in 2030.

Intel said last fall that it had finalized a nearly $8 billion grant under the CHIPS and Science Act to fund its factory-building plans. The CHIPS Act was passed in 2022, under the Biden administration.