The US government has announced an investment of $8.9bn in Intel, equivalent to a 9.9% stake in the company, which will be funded by grants awarded to Intel under the 2022 CHIPS Act and the Secure Enclave programme.
The deal has been touted by President Trump during a White House press conference and is part of a wider strategy to reduce the US’s reliance on China and bring chip manufacturing back to American shores.
While public-private partnerships are not unprecedented in the US, the nature of this intervention is unusual, according to experts.
Some observers have queried the move due to Intel’s falling share price and the fact that the government will receive no guaranteed dividends from the investment, among other issues.
Timothy Meyer, professor in international business law, said he was interested to see how the US government would use its leverage to shift orders in favour of Intel.
The White House directed further queries to a post by President Trump on Truth Social, in which he claims the shares are already valued at over $11bn.
