Trump says Intel has agreed to a deal for US to take 10% equity stake

(Reuters) - President Donald Trump said on Friday the U.S. would take a 10% stake in Intel <INTC.O> under a deal with the struggling chipmaker and is planning more such moves, the latest extraordinary intervention by the White House in corporate America.

An official announcement on the arrangement is expected later in the day, a source familiar with the matter said.

"He walked in wanting to keep his job and he ended up giving us $10 billion for the United States," Trump said on Friday.

Intel, whose shares rose more than 6%, declined to comment.

The move follows a $2 billion capital injection from SoftBank Group what was a major vote of confidence for the troubled U.S. chipmaker in the middle of a turnaround.

Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product roadmap and challenges in attracting customers to its new factories.

Trump, who met with Intel CEO Lip-Bu Tan on August 11, has taken an unprecedented approach to national security.

Tan, who took the top job at Intel in March, has been tasked to turn around the American chipmaking icon, which recorded an annual loss of $18.8 billion in 2024 — its first such loss since 1986. The company's last fiscal year of positive adjusted free cash flow was 2021.