In August 2025, the US administration converted $8.9 billion in CHIPS Act grants into a 9.9% to 10% equity stake in Intel Corp. This transaction established the federal government as the company's largest shareholder. Prior to this conversion, the previous administration had already distributed $2.2 billion in grants to the chipmaker.
The government holds no voting or governance rights in Intel despite its ownership position. Following the announcement of the equity deal, Intel shares increased in value by approximately 290%. The arrangement has triggered legal challenges from existing shareholders who cite ownership dilution as the primary cause for their lawsuits.
Commerce Secretary Howard Lutnick linked this equity position to a proposed plan to issue $5,000 payments to roughly 200 million American adults. The total cost of this initiative is estimated to exceed $1 trillion. President Trump stated that the government paid nothing for the Intel stake by repurposing previously earmarked funds.
The administration has indicated that requiring equity from companies receiving federal support may become a standard policy. While tariff revenue has been suggested as a funding source for the direct payment proposal, officials are using the Intel investment as an example of generating financial returns rather than relying solely on traditional spending.
