Trump Invests $11 Billion in Intel to Boost Semiconductor Future
President Donald Trump announced a substantial investment in Intel Corporation on March 15, 2025, as part of a broader strategy to enhance the United States’ position in the semiconductor industry. The U.S. government will acquire an $11 billion stake in Intel, which includes an $8.9 billion purchase of 433.3 million shares at $20.47 each. This investment represents a 9.9% ownership stake in the company and signals a strong vote of confidence in Intel’s future.
Analyst Ming-Chi Kuo from TF Securities commented on the implications of this deal, indicating that while the investment does not guarantee immediate advancements in semiconductor technology, it is designed to prevent significant valuation declines. Kuo stated, “The U.S. government’s investment doesn’t guarantee the technology gain, but it prevents valuation pain.” This investment is seen as a strategic endorsement rather than an emergency bailout, as the equity structure waives typical shareholder rights to avoid political interference.
Intel has faced a host of challenges recently, including reported losses of $18.8 billion in its 2024 foundry operations and delays in the development of its new Ohio manufacturing plant. Despite these hurdles, the company posted $12.86 billion in revenue for the second quarter of 2024, slightly exceeding expectations, although it also reported an adjusted loss of $0.10 per share.
Kuo emphasized that the investment structure, which involves common stock rather than preferred stock, allows all proceeds to go directly to Intel for operational and manufacturing costs. He noted that Intel’s stock has historically found strong support around the $20 per share mark, and this recent investment materially raises that valuation floor.
This strategic move to inject capital into Intel comes in the context of growing competition from companies such as Taiwan Semiconductor Manufacturing Company (TSMC), Advanced Micro Devices (AMD), and Arm Holdings. Kuo pointed out that a similar government investment model would not be feasible for TSMC or Samsung Electronics due to national security concerns and profitability levels.
Trump characterized the investment as a “great deal for America,” asserting that it would help solidify the country’s leadership in advanced chipmaking. The announcement aims to reassure markets about Intel’s pivotal role in rebuilding America’s semiconductor infrastructure.
Following the announcement, Intel’s shares rose by 1.05% in after-hours trading, reflecting a positive market response. According to Benzinga Pro data, the stock is currently maintaining strong momentum across various timeframes, showing resilience despite the company’s recent challenges.
As the semiconductor industry continues to evolve, the implications of this government investment in Intel will be closely monitored, particularly in terms of its ability to foster technological advancements and strengthen the U.S. position in a highly competitive global market.
