In a dramatic intervention to rescue America’s faltering chip manufacturing ambitions, the Trump administration has converted billions in CHIPS Act grants into a $5.7 billion equity stake in Intel (NASDAQ:INTC), giving the U.S. government a 10% ownership and significant leverage over the struggling company’s future.
The unprecedented deal, which makes the U.S. government one of Intel’s largest shareholders, is designed to prevent a potential spinoff of Intel’s deeply unprofitable foundry business, a move analysts and investors have long urged.
