Intel shares rose 6% Friday after Commerce Secretary Howard Lutnick confirmed the U.S. government purchased a 10% stake in the company, according to CNBC. Intel disclosed the $8.9 billion investment covered 433.3 million shares at $20.47 each, below market price, giving the stake an immediate value of about $11 billion. The government used $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from secure chip funds to finance the purchase. Trump called the deal a win for America and Intel, while Intel stressed the U.S. will not receive a board seat or governance rights. The agreement also includes a warrant for the government to acquire another 5% if Intel loses majority ownership of its foundry business. CEO Lip-Bu Tan said the company is committed to keeping advanced semiconductor research, development, and manufacturing in the U.S.
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