The deal puts Trump on better terms with Intel CEO Lip-Bu Tan, after the president recently said the CEO should step down due to conflicts of interest. It will ensure that the chip maker will receive about US10-billion in funds for building or expanding factories in the US.
Under the agreement, the US will purchase a 9.9 stake in Intel for 8.9-billion, or 20.47/share, which represents a discount of about 4 from Intels closing share price of 24.80 on Friday.
The purchase of the 433.3 million Intel shares will be made with funding from the 5.7-billion in unpaid grants from the Biden-era Chips Act and 3.2-billion awarded to Intel for the Secure Enclave programme, also awarded under Trumps predecessor, Democratic President Joe Biden.