By Jaspreet Singh, Max A. Cherney and Sayantani Ghosh SAN FRANCISCO (Reuters) -U.S. President Donald Trump is injecting nearly $9 billion into Intel in exchange for a 9.9% equity stake. But the money - which the struggling chipmaker was slated to receive anyway under a federal funding act - will not be enough for its contract-chipmaking business to flourish,

While Intel says the government is making an “$8.9 billion investment in Intel common stock,” the administration does not appear to be committing new funds.

The Trump administration is aiming to take an equity stake in Intel, according to US commerce secretary Howard Lutnick. Experts say the unconventional deal could backfire.

Defense Secretary Pete Hegseth has fired a general whose agency’s initial intelligence assessment of U.S. damage to Iran nuclear sites angered President Donald Trump.

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.