WASHINGTON, D.C. — A shareholder lawsuit has been filed against Intel’s board, the US Department of Commerce, and Commerce Secretary Howard Lutnick. The legal challenge seeks to unwind the government’s ownership position in Intel and argues that the Chips Act does not give the government authority to demand an equity position as a condition of receiving a grant.

The complaint alleges that the deal was a breach of the board’s fiduciary duties. Lutnick has asked the court to dismiss the case, while Intel Chief Executive Officer Lip-Bu Tan and other board members have moved to dismiss the case as well.

Lutnick defended the equity arrangements in a court filing, stating that the arrangement was authorized under federal law and is important for the US defense industrial base. Democratic Senator Elizabeth Warren has written to Lutnick questioning the Intel investment.

The US government has taken ownership stakes in publicly traded companies beyond Intel. The Department of Defense made a $400 million equity investment in MP Materials Corp. in July 2025. MP Materials Corp is an American rare earth materials company.

MP Materials shares increased by more than 150% within five weeks of the government taking a stake. However, MP Materials shares are down nearly 27% in the year since the government took a stake, though they have increased by 87% since July 2025 overall.

Trilogy Metals Inc. shares have gained 73% since October 2025, with the stock currently trading at $3.62. The Commerce Department has also used funding from the Chips Act to invest in International Business Machines Corp. and GlobalFoundries Inc.

Intel Corp. shares have increased by over 300% in the year since reports emerged that the Trump administration was in talks to take an ownership stake in the company. Despite this longer-term gain, Intel shares are down 37% since June 2026. Intel's performance since June 2026 is the fifth worst in the S&P 500 Index.

Why It Matters

This lawsuit challenges the statutory interpretation of the CHIPS for America Programs, which are authorized by Title XCIX of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Pub. L. 116-283), as amended by the CHIPS Act of 2022 (Division A of Pub. L. 117-167). The outcome could determine whether federal agencies can require equity stakes as a condition for semiconductor manufacturing grants.

The events described span 17 years, from 2009 to 2026, recalling previous instances of government intervention in private industry. In 2009, the US Treasury Department took a roughly 60% stake in General Motors Co. By 2013, the US Treasury Department had sold all of its stake in General Motors Co.

Timeline

Intel Corp. shares have increased by over 300% in the year since reports emerged that the Trump administration was in talks to take an ownership stake in the company. The US government agreed to take a 10% stake in Trilogy Metals Inc. in October 2025.

Trilogy Metals’ US shares jumped from $2.09 to a high of $10.60 within days of the deal announcement. The deal between the US government and Trilogy Metals Inc. included approval for an Alaska road project essential to accessing areas where the company has mining claims.

What's New

The CHIPS for America Programs are authorized by Title XCIX of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Pub. L. 117-167). MP Materials Corp is American Rare Earth materials company.