Recently, Intel announced a major agreement with the U.S. government to boost the country's technology and manufacturing leadership. Under the deal, the U.S. government will invest $8.9 billion in Intel's common stock.

This investment combines $5.7 billion in previously approved but unpaid grants under the U.S. CHIPS and Science Act with $3.2 billion allocated as part of Intel's Secure Enclave program. Intel will continue fulfilling its Secure Enclave commitments and emphasized its dedication to providing trusted and secure semiconductors for the U.S. Department of Defense. Including an earlier $2.2 billion CHIPS Act grant, the total investment in Intel reaches $11.1 billion.

The agreement sets the purchase price at $20.47 per share for 433.3 million shares, representing 9.9% of Intel's total stock. While the government will not hold seats on Intel's board, it will participate in votes on matters requiring shareholder approval. The deal values Intel shares roughly 17.5% below the closing price on the prior Friday, making the U.S. government Intel's largest shareholder. Following the announcement, Intel's stock rose 5.5% at Friday's close but dipped slightly in after-hours trading once the transaction details were released.

Additionally, the government will receive a five-year warrant to purchase an extra 5% of Intel shares at $20 per share, further strengthening the partnership and supporting Intel's role in advancing U.S. semiconductor innovation.