Computer chip manufacturer Intel has been struggling in recent years and announced plans last summer to layoff 15% of its workforce.

In response, the Trump administration just signed a deal to acquire a nearly $9 billion stake in the beleaguered company.

Deal does not come with board representation

According to Politico, the agreement will involve a purchase of common stock financed through the CHIPS and Science Act of 2022.

The purchase will consist of $5.7 billion worth of grants which were previously awarded but not yet paid out while another $3.2 billion will come from a Defense Department program.

The government's ownership role will be passive in nature and not come with a position on the company's board of directors or information rights.

"I said, I think it would be good having the United States as your partner," President Donald Trump was quoted as telling reporters at the White House. "[CEO Lip-Bu Tan] agreed, and they’ve agreed to do it."

Federal government now owns 10% of Intel

Commerce Secretary Howard Lutnick heralded the development in a social media post on Friday, writing, "The United States of America now owns 10% of Intel, one of our great American technology companies."

BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies.

This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.

Thanks to Intel… pic.twitter.com/AYMuX14Rgi

— Howard Lutnick (@howardlutnick) August 22, 2025

"This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge," the secretary continued.

"Thanks to Intel CEO [Lip-Bu Tan] for striking a deal that’s fair to Intel and fair to the American People," Lutnick went on to add.

North Carolina Republican senator criticizes deal on free market grounds

Intel's CEO issued a statement of his own, saying, "President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security."

"We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership," Tan stressed.

However, Politico noted that the agreement has attracted criticism, including from North Carolina Republican Sen. Thom Tillis.

Tillis likened the deal to business arrangements in China, remarking, "You’re going to have to explain to me how this reconciles with free-market capitalism."