Trump’s Intel Deal Raises Global Concerns, Despite Wall Street Boost

The United States government has officially taken a 10 percent stake in Intel, a move that could end up hurting the chipmaker’s international sales, even as the company’s stock ticked higher on Wall Street.

Intel revealed in a securities filing on Monday that the deal could limit its ability to secure future government grants and complicate overseas business. White House economic adviser Kevin Hassett also said the US might take equity stakes in other AI and chip firms — possibly including Advanced Micro Devices or Taiwan Semiconductor Manufacturing.

Sales outside the US made up 76 percent of Intel’s revenue in 2024, with nearly a third of that coming from China. Still, the company is pressing ahead.

“I think this is a very, very special circumstance because of the massive amount of CHIPS Act spending that was coming Intel’s way,” Hassett told CNBC. “I’m sure there’ll be more transactions, if not in this industry, in other industries.”

President Donald Trump was quick to celebrate the move on Truth Social:

“I WILL MAKE DEALS LIKE THAT FOR OUR COUNTRY ALL DAY LONG.”

The $5.7bn deal will see the government buy shares using unpaid CHIPS Act grants, while an extra $3.2bn is earmarked for Intel’s Secure Enclave programme. Shares are being sold to the government at a $4 discount, diluting existing stockholders and reducing their influence, according to Intel’s filing.

Trump brushed off critics, saying “stupid people” were upset, but insisted the deal will mean “more jobs and money” for the US.

Still, the timing is awkward. Intel recently announced it would cut 25,000 jobs by the end of 2025, and its chip sales fell 3 percent in the last quarter.

Despite the risks, investors seemed unfazed. Intel stock was up 1.2 percent in early trading on Monday.