The U.S. government plans to take a 10% stake in Intel, President Donald Trump told reporters Friday. Bloomberg was first to report the news, which pushed the semiconductor chip company’s stock up more than 7%. Trump said Intel has agreed to the proposal.

The US government has taken an $8.9 billion stake in Intel (INTC), buying 433.3 million shares in the chipmaker at a price of $20.47 per share, giving the government a 9.9% stake in the chipmaker. The government’s investment in Intel will be a passive ownership,

The Trump administration and Intel Corp. are poised to announce details on Friday of an agreement to give the US government an equity stake in the chipmaker, people familiar with the plan say.

Conservative radio host Erick Erickson called the equity stake plan “terrible” and said it was “actual socialism happening by a Republican administration.”

Sen. Chris Coons (D-Del.) joins 'Squawk Box' to discuss President Trump's deal to allow Nvidia and AMD to sell chips to China, AI arms race with China, Trump administration's push for a stake in Intel,