Commerce Secretary Howard Lutnick previously said the U.S. government should receive equity in return for the CHIPS Act cash grants Intel has received.

The US government takes a 9.9% stake in Intel with an $8.9B investment, but analysts warn funding alone may not save its struggling foundry business amid yield challenges and weak customer demand.

Intel shares were up about 6% on the day, adding to earlier gains after reports that President Trump is set to announce the U.S. government is taking a nearly 10% stake in troubled chipmaker. The investment would cap a two-week frenzy in Washington over the future of the company.

The back-to-back news items signal a public and private sector commitment to domestic semiconductor production and underscore Intel's importance.

Aug 19 (Reuters) - Intel (INTC.O) is getting a $2 billion capital injection from SoftBank Group (9984.T) in a major vote of confidence for the troubled U.S. chipmaker in the middle of a turnaround.

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.