06:00 AM EDT, 08/25/2025 (MT Newswires) -- Intel ( INTC ) shares were up more than 3% in Monday's premarket activity after the company announced that the US government would acquire an $8.9 billion investment in the company as part of a deal with the Trump administration.

Under terms of the agreement, the US government will acquire 433.3 million Intel ( INTC ) shares at a discounted price of $20.47 per share, giving it a 9.9% stake in Intel ( INTC ), the company said.

To find the minority stake, the government will use $5.7 billion in grants previously awarded to the chipmaker under the US. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program, the company said.

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

The government's investment in Intel ( INTC ) will be a passive ownership, without board representation or other governance or information rights, the company said.

The government will also receive a five-year warrant, at $20 per share, for an additional 5% of Intel ( INTC ) shares, exercisable if the company ceases to own at least 51% of the foundry business, the company said.