Intel stock surged on Friday after President Donald Trump announced that the U.S. government had struck a deal to buy nearly a 10% stake in the chipmaker. The confirmation came in a statement released after markets closed, putting an end to weeks of speculation. Shares of Intel finished the day up 5.5%.

“They’ve agreed to do it and I think it’s a great deal for them,” Trump told reporters at the White House.

Intel later confirmed the agreement, saying the U.S. would invest $8.9 billion in Intel common stock. The package is being funded with $5.7 billion from previously awarded but unpaid CHIPS and Science Act grants, along with $3.2 billion from the Secure Enclave program.

In exchange, the government will receive 433.3 million Intel shares at $20.47 each, giving it a 9.9% stake in the company. This latest support adds to the $2.2 billion in CHIPS grants Intel has already received, bringing the total federal backing for the company to $11.1 billion.

Intel said it remains committed to fulfilling its Secure Enclave obligations and emphasized its role as the only semiconductor company conducting leading-edge logic research, development, and manufacturing within the U.S.

“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” said Intel CEO Lip-Bu Tan.

Trump also celebrated the agreement on Truth Social, writing, “This is a great Deal for America and, also, a great Deal for INTEL.”