On Friday, Intel (INTC.US) announced that the U.S. government will invest $8.9 billion in the company, making it the largest single shareholder. According to the announcement, the U.S. government will purchase Intel shares at $20.47 per share, acquiring a 9.9% stake in the company.

The investment funding consists of $5.7 billion from previously unallocated CHIPS and Science Act appropriations, plus an additional $3.2 billion from other U.S. national security programs. Intel emphasized that the government's investment represents a "passive investment," with no board representation or information disclosure rights.

Additionally, the U.S. government will receive a five-year warrant with a $20 strike price, allowing it to potentially acquire an additional 5% stake under specific conditions—namely, if Intel's ownership in its foundry business falls below 51% at any future point.

Commerce Secretary Howard Lutnick stated on social media: "This historic agreement solidifies America's leadership in semiconductors, driving economic growth while ensuring our technological advantage."

Prior to this transaction, Vanguard Group was Intel's largest shareholder with an 8.4% stake, according to FactSet data. Following this deal, the U.S. government surpasses Vanguard to become Intel's largest single investor.

Earlier that day, President Trump stated at the White House that Intel had agreed to grant the government a 10% equity stake, calling it "an excellent deal for Intel."

Following the news, Intel shares closed up 5.53% on Friday at $24.80. However, the stock declined approximately 1% in after-hours trading.

Notably, earlier this week, Intel also announced securing a $2 billion investment from Japan's SoftBank Group. This investment announcement followed media reports of Intel's discussions with the Trump administration regarding potential government equity participation.