• U.S. government to acquire a 10% stake in Intel, valued at approximately $11 billion.
• The arrangement converts government grants into equity shares, marking a significant intervention in corporate affairs.
• Intel's CEO Lip-Bu Tan's previous resignation call by Trump was reversed after a positive meeting.
• Deal provides crucial funding for Intel's factory expansions amid financial struggles.
• Critics warn of potential risks intertwining corporate decisions with politics.

President Donald Trump announced on Friday that the U.S. government would acquire a 10% stake in Intel under an unprecedented deal that converts government grants into equity shares, which comes as a remarkable intervention in corporate affairs. The agreed-upon investment is worth approximately $10 billion, as the U.S. will purchase 433.3 million shares of Intel at $20.47 per share, marked as a discount from the current trading price of around $24.80, according to Reuters and CBS News.

The deal follows a significant turnaround in Trump's relations with Intel CEO Lip-Bu Tan, who only days prior faced demands for his resignation over concerns about his ties to Chinese firms. "He walked in wanting to keep his job, and he ended up giving us $10 billion for the United States," Trump stated, emphasizing the deal's benefits for both parties, according to Los Angeles Times and HuffPost.

This agreement formally converts $5.7 billion in government CHIPS Act grants that were previously authorized, alongside an additional $3.2 billion under the Secure Enclave program. Although the stake gives the U.S. significant ownership, it does not confer voting rights or board representation, as detailed by multiple sources including Channel News Asia and India Times.

Following the announcement, Intel's shares saw a rise of over 6%, reflecting investor confidence amid the ongoing challenges faced by the chipmaker, which has recorded significant losses and layoffs in recent years. Experts speculate whether the government's investment can help reverse Intel's struggles in the competitive semiconductor market dominated by firms like Nvidia and AMD, according to Business Insider and NPR.

While supportive voices hail the investment as a pathway to bolster U.S. technological leadership, critics like Scott Lincicome from the Cato Institute voice concerns over the implications of government entanglement in corporate operations, altering the dynamics of the private sector and potentially encouraging other tech firms to align with the administration for favorable treatment, as reported by Al Jazeera and The Independent.