U.S. President Trump met with Intel CEO Pat Gelsinger at the White House on Friday to finalize a deal that gives the U.S. government a nearly 10% stake in the struggling chipmaker.

According to Intel's statement, the U.S. government will receive 433.3 million shares of common stock, representing 9.9% of Intel's fully diluted common shares. This $8.9 billion investment will be funded by previously approved but unpaid grants from the CHIPS and Science Act and the "secure enclave" program.

Intel stated that, combined with the $2.2 billion in CHIPS Act funding received, this investment totals $11.1 billion. The associated shares carry no voting rights, and the U.S. government will not receive a board seat.

"We appreciate the confidence of the President and his administration in Intel and look forward to working together to advance America's leadership in technology and manufacturing," Gelsinger said in the statement.

Intel's stock price closed up 5.5% at $24.80 in New York on Friday. After the deal was finalized, the stock fluctuated, falling about 1% in after-hours trading.

Trump said on social media that "this is a good deal for America and a good deal for Intel."

"Intel's work in cutting-edge semiconductors and chip manufacturing is vital to our nation's future," he said.

Critics argue that the U.S. government's stake represents an unprecedented intervention in a domestic company. This departure from the long-held principles of free-market capitalism by investors and policymakers is an exception typically seen only in extreme circumstances like war or systemic economic crisis.

A White House official said the administration views this as a special and unique situation and considers semiconductor production a national security issue. The official stated that Intel is one of the few U.S. companies capable of large-scale domestic chip production, and the government wants to avoid the kind of shortages that have plagued supply chains in recent years.