Before the official announcement, President Donald Trump confirmed the investment in a press briefing, mentioning that Intel CEO Lip-Bu Tan agreed to grant the government a 10 percent ownership stake. Earlier in the month, Trump had urged Tan to step down due to his affiliations with China and today portrayed the agreement as a means for the executive to maintain his position.

Trump shared with reporters that he proposed the deal during discussions with Tan. “I suggested, ‘It might be beneficial for the United States to become your stakeholder,’” Trump mentioned. “They have agreed to proceed, and I believe it’s a significant opportunity for them.” Intel has previously received $2.2 billion through the CHIPS Act.

According to Intel, the government’s stake will be “a passive ownership, without Board representation or other governance or information rights.” Tan expressed gratitude in a press release, stating, “We appreciate the trust shown by the President and the Administration in Intel, and we are eager to collaborate on enhancing U.S. technology and manufacturing leadership.”

The confirmation of the deal comes just days after SoftBank announced plans to invest $2 billion into Intel to “further expand” chipmaking in the US.

Treasury Secretary Scott Bessent indicated the possibility of government investment earlier this week, explaining in a CNBC interview that it “would be a transformation of grants” aimed at “stabilizing the company for chip manufacturing here in the US.”

It doesn’t seem like this is the end for Trump’s approach to deal-making, as he said during the briefing that “he’ll do more of them” in the future.

Update, August 22nd: Added information from Intel.