Donald Trump surprised many in August when he made the government the owner of 9.9% of the troubled U.S. chip maker Intel. The administration paid for the Intel equity using $8.9 billion of the Biden administration’s CHIPs and Science Act grant money that had already been earmarked for Intel. The new grant money comes on top of the $2.2 billion in CHIPS Act grants Intel already received, bringing the government’s total investment to $11.1 billion.

Intel’s finance chief David Zinsner said the government’s investment is meant to incentivize Intel to keep majority control over its contract chip-fabrication business. As part of the deal, the government gets a five-year warrant to buy 5% more Intel shares if the company’s ownership of its chip foundry operation falls below 51%.

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