President Donald Trump announced that Intel has agreed to give the US government a 10% ownership stake, with a formal deal expected Friday at the White House, according to the Wall Street Journal.

“They’ve agreed to do it and I think it’s a great deal for them,” Trump said today. He described the deal as a “great opportunity” to help revive Intel, which he argued has slipped behind global chipmaking competitors. Intel CEO Lip-Bu Tan is expected to attend the signing.

“And I said, You know what? I think the United States should be given 10% of Intel, and he said, ‘I would consider that,’ and I said, ‘Well, I’d like you to do that,’” Trump said of his talks with Tan last week.

The agreement reportedly stems from discussions over the Chips and Science Act, with subsidies being converted into ownership shares. Such a move would represent a rare and controversial level of government intervention in a major American company, normally reserved for wartime or systemic crises. Intel declined to comment on the timing, but its stock climbed more than 6% after the news.

Commerce Secretary Howard Lutnick said the administration wants taxpayer dollars to generate direct returns, not just one-time grants. Officials clarified that companies already ramping up US investments—like TSMC and Micron—would not be pressed for similar concessions.

Trump has signaled a broader strategy of economic statecraft in his second term, seeking greater US leverage over critical industries. Earlier this year, he secured revenue-sharing deals with Nvidia and AMD on China-bound AI chip sales and obtained a “golden share” in Nippon Steel that gives him influence over US Steel.

The news comes days after it was announced that SoftBank Group is making a surprise $2 billion investment in Intel, buying shares at $23 apiece. Bloomberg first reported the SoftBank deal to purchase $2 billion worth of Intel shares at $23 apiece. As we noted last week, shares last peaked above $64 in 2021.

"For more than 50 years, Intel has been a trusted leader in innovation," SoftBank CEO Masayoshi Son wrote in a statement. He added, "This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role."

Intel CEO Lip-Bu Tan, a longtime SoftBank associate, added: "I appreciate the confidence he has placed in Intel with this investment."

SoftBank's US footprint is expanding, we noted last week. It recently bought Foxconn's Ohio EV plant, a move that could help Stargate, as Asian chip giants like TSMC and Samsung commit billions to the 'America First' agenda. 

Recall, we wrote days ago about the Trump administration's interest in taking direct stakes in US strategic companies, first with...

Then with:

Bloomberg reported last week that Washington was in talks to convert up to $10.9 billion in Chips Act grants into equity, which could have given the government roughly a 10% stake and made it Intel's largest shareholder.

This mirrored the Pentagon's $400 million preferred equity purchase of MP Materials last month, which we had flagged ahead of time despite others calling it "unprecedented."

A press conference is expected Friday afternoon with more details, according to Bloomberg.