Intel stock rallies as Trump confirms a 10% US government stake, sparking debate over state capitalism, reshoring benefits, and long-term risks for investors.

The deal is among the largest government interventions in a U.S. company since the rescue of the auto industry after the 2008 financial crisis.

President Donald Trump said the the Intel “deal” would give the U.S. government a roughly 10 percent share in the company, or about $10 billion.

The United States government is making an $8.9 billion investment in Intel, representing a 9.9 percent stake in the company, according to a press release the company published on Friday.

The US$8.9 billion investment in Intel will be funded by grants from the US Chips and Science Act and Secure Enclave program that had previously been extended but not yet paid

The Trump administration previously signaled interest in investing in the struggling chip maker and will use funds from Biden's CHIPs Act for the investment.

The US government has taken an $8.9 billion stake in Intel (INTC), buying 433.3 million shares in the chipmaker at a price of $20.47 per share, giving the government a 9.9% stake in the chipmaker. The government’s investment in Intel will be a passive ownership,