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President Donald Trump said Friday that American chipmaker Intel had agreed to give the U.S. government a 10% stake, which is worth roughly $10 billion.<\/p>\n
\u201cThey\u2019ve had some bad management over the years and they got lost. I said \u2018I think you should pay us 10% of your company,\u2019 and they said \u2018yes.\u2019 That\u2019s about $10 billion. I don\u2019t get it, this comes to the United States of America,\u201d he said in a press conference<\/a> with reporters in the Oval Office.<\/p>\n Intel was previously allocated about $11 billion in grants to build out manufacturing in the U.S. under the CHIPS and Science Act passed by Congress during the Biden administration. <\/p>\n Under the new agreement with Trump, the government will take equity in return for the grant money allocated to Intel through the CHIPS Act, the New York Times<\/em> reported<\/a>. The government will not be involved with company governance or claim a board seat, the Times<\/em> reported.<\/p>\n Intel shares jumped 5.5%.<\/p>\n A spokesperson for Intel declined to comment to Fortune<\/em>. The White House did not immediately respond to Fortune<\/em>\u2019s request for comment.<\/p>\n Commerce Secretary Howard Lutnick has previously outlined plans for the U.S. government to receive equity in return for the CHIPS Act cash grants Intel has received.<\/p>\n \u201cWe should get an equity stake for our money, so we\u2019ll deliver the money which was already committed under the Biden administration,\u201d Lutnick told CNBC<\/a> earlier this week.<\/p>\n Trump claimed the agreement came after a conversation with Intel CEO Lip-Bu Tan, whom he previously called on to resign in a post<\/a> on his social media website Truth Social. <\/p>\n Trump said Friday he called for Tan\u2019s ouster because of a letter Sen. Tom Cotton (R-Ark.) sent to Intel\u2019s chairman, expressing concern about Tan\u2019s ties to Chinese companies. Following Trump\u2019s post, Tan traveled to Washington for a meeting with Trump last week.<\/p>\n \u201cHe walked in wanting to keep his job and he ended up giving us $10 billion for the American people,\u201d Trump said Friday.<\/p>\n The Intel agreement comes as the Trump administration has shown a recent willingness to take on a more interventionist role with U.S. companies. As a condition of the merger between Nippon Steel and U.S. Steel, the administration demanded to name a board member to the combined entity and secured a \u201cgolden share\u201d<\/a> giving it veto power over company decisions.\u00a0<\/p>\n The U.S. also recently reached a revenue-sharing agreement<\/a> with chipmakers Nvidia and AMD, giving the government 15% of sales generated through AI chip sales in China as part of its terms for granting export licenses to the companies. Treasury Secretary Scott Bessent said last week similar agreements could be expanded<\/a> to other industries.<\/p>\n Some Republicans, including Sen. Rand Paul (R-Ky.), have criticized Trump\u2019s plan for the U.S. government to take a stake in Intel.\u00a0<\/p>\n \u201cIf socialism is government owning the means of production, wouldn\u2019t the government owning part of Intel be a step toward socialism? Terrible idea,\u201d Paul wrote Wednesday in a post on X<\/a>.<\/p>\n Still, Trump was undeterred by the criticism and noted Friday that the government will continue its interventionist path as long as the agreements don\u2019t hurt the U.S. military or security.<\/p>\n \u201cWe do a lot of deals like that. I\u2019ll do more of them,\u201d he said.\n<\/p>\n<\/div>\nIntroducing the 2025 Fortune Global 500<\/strong>, the definitive ranking of the biggest companies in the world. Explore this year’s list.<\/a><\/div>\n