09:03 AM EDT, 08/25/2025 (MT Newswires) -- Intel ( INTC ) shares rose early Monday following the company's announcement last week that the US government agreed to acquire a 9.9% stake in the chipmaker, as part of an $8.9 billion investment deal with the Trump administration.

The US government will purchase 433.3 million shares of Intel ( INTC ) at $20.47 apiece under the terms of the agreement, the company said Friday. The government plans to use the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel ( INTC ) under the US Chips and Science Act to fund the acquisition of the equity stake, as well as $3.2 billion given to the company under the Secure Enclave program.

The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel ( INTC ) has received to date, bringing the US government's overall investment in the company to $11.1 billion, the chipmaker said.

Intel's ( INTC ) stock was up 1.6% in the most recent premarket activity.

"Intel ( INTC ) is deeply committed to ensuring the world's most advanced technologies are American made," Chief Executive Lip-Bu Tan said in a statement. "We are grateful for the confidence the President (Donald Trump) and the Administration have placed in Intel ( INTC ), and we look forward to working to advance US technology and manufacturing leadership."

The deal confirms weeks of media speculation that the Trump administration was in talks to acquire a 10% stake in Intel ( INTC ). Earlier in August, Trump held a meeting with Tan after calling for his immediate resignation, claiming the Intel ( INTC ) CEO was "highly conflicted." Tan was appointed as Intel's ( INTC ) CEO in March.

"The United States of America now fully owns and controls 10% of Intel ( INTC )," Trump said in a Friday post on Truth Social. Trump said he negotiated the deal with Tan and that Intel's ( INTC ) work in developing semiconductors and chips is "fundamental" to the country's future.

Intel ( INTC ) said it is currently carrying out a substantial expansion of chip-making facilities across the US, through investments of more than $100 billion. The company expects its chip fabrication plant in Arizona to begin high-volume production later in 2025.

The US government's investment will be a "passive ownership," with no board representation or other governance or information rights, according to Intel ( INTC ). The government will also receive a five-year warrant, at $20 per share, for an additional 5% of Intel's ( INTC ) stock that could come into effect if the company no longer owns at least 51% of its manufacturing foundry business, it added.

Last week, Intel ( INTC ) said it secured a $2 billion equity investment from Japanese investment giant SoftBank.