Intel Corp ( INTC ) shares are trading higher Monday after the U.S. government announced plans to take a 10% stake in the chipmaker.

What Happened: After the market close on Friday, Intel ( INTC ) announced an agreement with the Trump administration in which the U.S. government will invest $8.9 billion in Intel ( INTC ) to support the continued expansion of American technology and manufacturing.

Intel ( INTC ) has already received $2.2 billion in funding under the U.S. CHIPS and Science Act. The $8.9 billion investment brings the U.S. government’s total investment in Intel ( INTC ) up to $11.1 billion, giving the government a 9.9% stake in the company.

“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel ( INTC ) is deeply committed to ensuring the world’s most advanced technologies are American made,” said Lip-Bu Tan, CEO of Intel ( INTC ).

“President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security.”

The U.S. government agreed to purchase 433.3 million shares of Intel ( INTC ) common stock at a price of $20.47 per share. The 9.9% ownership stake will be a passive investment with no board representation. The government has agreed to vote with the company’s board on matters requiring shareholder approval.

President Donald Trump recently called on Intel ( INTC ) CEO Lip-Bu Tan to resign before changing his tone on Tan following a meeting at the White House.

Intel ( INTC ) said in a statement that the company was “deeply committed” to working to advance U.S. national and economic security interests and was looking forward to continued engagement with the Trump administration.

The news also comes after Intel ( INTC ) shares got a boost last week after Softbank announced plans to invest $2 billion in the company to deepen commitments to investing in the U.S.

INTC Price Action: Intel ( INTC ) shares were up 1.57% at $25.19 at the time of publication Monday, according to Benzinga Pro.

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