The struggling US chip manufacturer Intel has agreed to allow the US government to take a 10% stake in it, according to President Donald Trump. Trump, in comments made at the White House on Friday, praised the deal as something good for the company.

“BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies,” Lutnick said. “This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.”

The president's highly unusual announcement underscores the Trump administration's desire to take control over U.S. businesses.

Commerce Secretary Howard Lutnick told CNBC the U.S. government wants a stake in Intel in exchange for CHIPS Act grant money promised under Biden.

Intel CEO Lip-Bu Tan is scheduled to visit the White House on Monday following President Donald Trump’s call last week for his ouster over ties to China, according to a new report.

Treasury Secretary Scott Bessent said the White House wouldn't try to flex its power with a stake in Intel.

A $2 billion investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel, while a reported 10% stake by the U.S. would be worth about $10.4 billion as of Monday’s share price.