US President Donald Trump announced on Friday that the US "now owns and controls 10% of Intel", adding that the value of the acquired shares is "about $11 billion". The president also said that "the US paid nothing for these shares", the AP reported.
"This is a great deal for America and also for INTEL. "The cutting-edge semiconductor and chip manufacturing that INTEL does is essential to the future of our nation," Trump said on Truth Social.
Earlier this month, Trump met with Intel CEO Lip-Bu Tan after previously calling for his resignation and describing him as "highly conflicted".
Intel Corporation confirmed Friday that it has reached an agreement with the U.S. government that will invest $8.9 billion in the technology company's common stock. The company also said the government's investment will be a "passive participation" without the right to participate in the management.
"The $8.9 billion investment is in addition to the $2.2 billion that Intel has received so far in subsidies under the CHIPS program, with a total investment of $11.1 billion," the company explained.
Intel also said that the government will purchase 433.3 million shares at a price of $20.47 per share, representing 9.9% of the company's shares. The deal reflects "the extremely important role that the company plays in the expansion of the domestic semiconductor industry.".