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,

The United States government is making an $8.9 billion investment in Intel, representing a 9.9 percent stake in the company, according to a press release the company published on Friday.

Intel's statement followed remarks from Trump that Washington would gain a direct stake in the chipmaker under a new agreement.