US buys $8.9B Intel stake to boost local chip production
In a big move for tech, the US government just bought almost 10% of Intel by investing $8.9 billion—part of its plan to boost homegrown chip production and rely less on foreign suppliers.
Announced by President Trump after talks with Intel CEO Lip-Bu Tan, the deal uses funds from the CHIPS Act and Secure Enclave program, bringing total federal support for Intel to $11.1 billion.
The stake is passive, so the government won't be calling the shots at Intel.
Implications of the deal
This is all about making sure America stays competitive in making computer chips, especially against giants like TSMC and Samsung in Asia.
Intel's promising to pour over $100 billion into expanding its US facilities, but some experts worry that government ownership could complicate business decisions or global relations.
The timing's interesting too—it follows questions about CEO Tan's China connections and comes as other global tech players are also investing big in US chipmaking.