Intel warned shareholders that the government’s stake could lead to "adverse reactions" from international customers, investors, and business partners.

President Donald Trump on Friday announced the U.S. government has secured a 10% stake in struggling Silicon Valley pioneer Intel in a deal completed just a couple weeks after he depicted the company’s CEO as a conflicted leader unfit for the job.

The US government now owns nearly 10% of Intel after an $8.9 billion deal, combining CHIPS Act funding and national security grants — here’s why it matters for America’s chip strategy.