Trump administration’s Intel investment relies on previously approved grants

Intel announced Friday that it had finalized a deal with the Trump administration after the former president declared that the government would take a 10% stake in the struggling chipmaker.

Despite Trump’s framing, the arrangement does not involve fresh funding. Intel explained that Washington is directing $8.9 billion that has already been granted to the business but has not yet been distributed, characterizing the investment as being linked to current subsidies rather than fresh funding.

That $8.9 billion stems from two Biden-era programs: $5.7 billion from the CHIPS Act and $3.2 billion from the Secure Enclave initiative. Trump has frequently blasted the CHIPS Act as a “horrible, terrible thing,” urging House Speaker Mike Johnson to dismantle it.

On his Truth Social platform, Trump insisted that the U.S. praised the agreement as "a big triumph for America—and a wonderful bargain for Intel," but paid nothing for the equity.

In a June regulatory filing, Intel disclosed that it had already received $2.2 billion in CHIPS Act funds, and had requested an additional $850 million that was still pending at the time. Legal experts told The New York Times that the CHIPS Act may not even allow the government to convert such grants into equity, raising the possibility of legal challenges to the deal.

Trump called for the resignation of Intel CEO Lip-Bu Tan earlier this month, accusing him of having conflicts of interest. But by Friday, his tone had softened—writing that he had “negotiated this agreement with Intel’s highly respected Chief Executive Officer.”

In a statement, Tan expressed gratitude for the administration’s support, pledging to strengthen U.S. leadership in advanced technology and manufacturing. Intel stressed that the government’s role would be purely passive, without board seats or governance rights.