The US government invested $8.9 billion in Intel Corporation (INTC.US) to become its largest single shareholder.

On Friday, Intel Corporation (INTC.US) announced that the U.S. government will invest $8.9 billion to become the company's largest single shareholder. According to the announcement, the U.S. government will purchase shares of Intel Corporation at a price of $20.47 per share, resulting in a 9.9% ownership stake. The investment funds will come from the previously unpaid $5.7 billion "Chips and Science Act" appropriation, as well as $3.2 billion from other U.S. national security projects. Intel Corporation emphasized that the U.S. government's investment is a "passive investment" and will not enter the company's board of directors, nor will it have disclosure rights. Additionally, the U.S. government will receive a warrant with a strike price of $20, valid for five years, allowing them to increase their stake by an additional 5% under certain conditions, with the condition being that Intel Corporation's ownership of its foundry business shares falls below 51% at a future point in time. U.S. Commerce Secretary Lutenik stated on social media: "This historic agreement strengthens U.S. leadership in the semiconductor field, not only promoting economic growth but also ensuring America's technological advantage." Prior to this, according to FactSet data, Vanguard Group was Intel Corporation's largest shareholder with an 8.4% stake. Following this transaction, the U.S. government surpassed Vanguard Group to become Intel Corporation's largest single investor. Earlier that day, U.S. President Trump said at the White House that Intel Corporation had agreed to transfer 10% of its shares to the government, calling it "a great deal for Intel Corporation." In response to the news, Intel Corporation's stock price rose by 5.53% on Friday to $24.8. However, in after-hours trading, the stock price briefly fell by 1%. It is worth noting that earlier this week, Intel Corporation also announced a $2 billion investment from Japan's SoftBank Group. This investment announcement came shortly after media reports of Intel Corporation discussing government investment with the Trump administration.