A major breakthrough: Intel agreed to sell a 10 percent stake to the government.

• This is one of the largest government interventions in an American company since the support for the auto industry after the 2008 financial crisis.
• President Donald Trump emphasized on August 22 during a press conference that an agreement on this matter was reached during negotiations with Intel CEO Lip-Bu Tan last week.
• "I told him, 'I think it would be good for the United States to be your partner.' He agreed, and we agreed to do that," Trump said.

Intel indicated that under the terms of the agreement, the U.S. government will invest $8.9 billion in Intel common stock, reflecting the administration's confidence in the company to advance key national priorities and its critically important role in developing the nation's semiconductor industry.

Intel's share price rose by more than 6 percent after the transaction was announced.

Intel's share price rose by more than 6 percent following the announcement of the transaction.

Lip-Bu Tan took over Intel in March, tasked with returning the company—once a leading chipmaker—to a dynamic growth path. The company recently decided to cancel construction of factories in Poland and Germany, citing overinvestment.

Intel holds contracts with the Pentagon and is also the largest beneficiary of subsidies under the CHIPS Act, passed under former President Joe Biden. The legislation was intended to revitalize American semiconductor manufacturing. Intel received $10.86 billion under the Act.

Intel is currently implementing a significant expansion of its domestic integrated circuit production capacity.

Intel is currently undertaking a significant expansion of its domestic chip manufacturing capacity, investing more than $100 billion to expand its U.S. facilities.

The company's newest integrated circuit manufacturing facility in Arizona is expected to begin high-volume production later this year, leveraging state-of-the-art U.S. semiconductor manufacturing technology.

Intel was founded in 1968. It was a pioneering company , producing increasingly efficient chips year after year . This established Silicon Valley as the foundation of the American high-tech industry. However, Intel missed several innovation revolutions, including those related to smartphones and artificial intelligence, allowing other chipmakers like Nvidia to gain ground, the New York Times noted.

Intel's investments in the US are consistent with President Donald Trump's strategy to make the US a leader in technology and manufacturing.