President Donald Trump said Friday that chip maker Intel had agreed to a U.S. government stake in its business.

Intel Corp. has agreed to the U.S. government taking a stake in the chip maker, President Donald Trump said Friday, not long after he met with the company’s chief executive after initially calling for him to resign.

Trump told reporters in the Oval Office that Intel has agreed to the U.S. taking a 10% stake in the company. Trump and Intel CEO Lip-Bu Tan are expected to speak about the agreement later Friday, according to a Wall Street Journal report.

The U.S. government plans to take a 10% stake in Intel, President Donald Trump told reporters Friday. Bloomberg was first to report the news, which pushed the semiconductor chip company’s stock up more than 7%. Trump said Intel has agreed to the proposal.

The news comes during a pivotal — and recently volatile — time for Intel. CEO Lip-Bu Tan is currently restructuring the chipmaker, shuttering certain divisions and laying off workers in a bid to focus on its core businesses and catch up to rivals like Nvidia.

Earlier this month, Trump pushed Tan to resign because of perceived conflicts of interest. Tan later met with Trump to find out a way to assuage the president and figure out ways for the company and government to work together.

Such federal government ownership of a major corporation would mark a dramatic departure from longstanding U.S. policy. Government equity stakes in private companies are extremely rare in the U.S. and highly controversial, with notable exceptions occurring during the 2008-2009 financial crisis when the government took temporary ownership stakes in companies like General Motors, AIG, and a few major banks to prevent economic collapse.

The government systematically sold those stakes back to private investors over the following several years.

The Intel deal, which is expected to be announced later Friday, comes days after the Japanese conglomerate SoftBank agreed to make a $2 billion investment in Intel. That deal was couched as a commitment to advanced technology and semiconductors in the U.S.. Under that agreement, SoftBank agreed to buy Intel common stock at $23 per share. Intel shares were trading around $25 on Friday afternoon.

TechCrunch has reached out to Intel and the White House for comment.

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This is a developing story…

New York (CNN) — President Donald Trump said on Friday he reached an agreement with Intel CEO Lip-Bu Tan that would involve the struggling chipmaker giving the United States a company stake worth $10 billion, a deal model that Trump said he hopes to revisit with other companies.

“I said, I think you should pay us 10% of your company,” Trump said of his conversations with Tan. “And they said yes.”

Trump said the deal will was a win for both sides.

“I think it’s a great deal for them. And I think it’s a great deal,” Trump said in the Oval Office on Friday. “He walked in wanting to keep his job, and he ended up giving us $10 billion for the United States.”

Two weeks ago, Trump called for Tan’s immediate resignation following reports about his alleged connections to China.

The agreement is part of an effort to help boost semiconductor manufacturing in the United States, although it is not immediately clear how involved the Trump administration aims to be in strategic decision-making at the company. Trump also said he would do more of these types of deals.

CNN has reached out to Intel for comment. The chipmaker’s stock (INTC) rose more than 6.5% on Friday.

After Trump met with Tan at the White House last week, reports emerged that the White House was considering the unusual move of taking an stake in Intel. Earlier this week, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick confirmed the discussions, saying the deal would likely involve converting grant funding from the Biden-era CHIPS Act into an equity stake.

“America should get the benefit of the bargain,” Lutnick told CNBC.

Like his predecessor, former President Joe Biden, Trump has said that increasing domestic production of semiconductors is a national security priority, given their central role in products ranging from cars and iPhones to weapons and medical machinery. Currently, most of the world’s chips are produced in Taiwan, although several major tech companies have been investing in increased chipmaking capacity in the United States in recent years.

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