Trump administration considering 10% stake in Intel, part of broader push to revitalize American semiconductor industry.
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The Trump administration is in discussions to take a stake of about 10 per cent in Intel Corp., according to a White House official and other people familiar with the matter, a move that could see the US become the beleaguered chipmaker’s largest shareholder.
The federal government is considering a potential investment in Intel that would involve converting some or all of the company’s grants from the US Chips and Science Act into equity, said the people, who asked not to be identified because the information is confidential. Intel has been slated to receive a combined $10.9 billion in Chips Act grants for commercial and military production. The company can also draw on up to $11 billion in loans under the 2022 law.
The grant money, which was originally designed to be disbursed over time as Intel meets project milestones, is roughly enough to pay for the targeted holding. At Intel’s current market value, a 10 per cent stake in the chipmaker would be worth around $10.5 billion. The exact size of the stake, as well as whether the White House chooses to move ahead with the plan, is still in flux, the people said.
White House spokesman Kush Desai declined to comment on the specifics of the discussions, saying only that no deal is official until it’s announced by the administration. The Commerce Department, which oversees the Chips Act, also declined to comment. Intel didn’t respond to a request for comment.
Intel also has attracted an investment from SoftBank Group Corp., which announced plans to buy $2 billion of the chipmaker’s shares. That transaction represents a vote of confidence in Intel from the Japanese tech giant, which is making a broader push to invest in the US.
Investors initially applauded news of the government investing in Intel, kicking off the biggest one-week rally in the stock since February. Intel shares slipped 3.7 per cent on Monday after Bloomberg reported on the potential size of the US stake, before rebounding on the SoftBank deal.
A big question is whether government equity would help reinvigorate Intel’s business. The chipmaker is suffering from stagnant sales and continuing losses, and it’s struggled to regain its technological edge. New Chief Executive Officer Lip-Bu Tan is seeking a turnaround, but his efforts have largely been focused on cutting costs and eliminating jobs. Intel will add large-scale manufacturing capacity only once customers are committed to using its more advanced production techniques, Tan said last month, sparking concern among investors that the company may be bowing out of the race for semiconductor leadership.
The Trump administration is particularly focused on shoring up Intel’s sprawling project in Ohio, the home state of Vice President JD Vance. Intel has repeatedly delayed the anticipated opening of that site, which the company originally envisioned as the world’s biggest semiconductor facility.
Beyond Intel, the White House official also floated the possibility that the administration could convert other Chips Act awards into equity stakes. It’s not clear whether that idea has gained traction broadly within the administration or whether officials have broached the possibility with any companies that could be affected.
The Chips Act set aside $39 billion in manufacturing grants — plus loans and tax credits — to revitalize the American semiconductor industry after decades of production shifting to Asia. Using Chips Act money for an Intel stake would mean the chipmaker isn’t necessarily getting a bigger government infusion than expected — possibly just one that’s on a faster timeline. As is the case for all Chips Act winners, Intel’s award was designed as a reimbursement, with the grant money split into tranches tied to specific project benchmarks.
Intel had received $2.2 billion of its award as of January. It’s unclear whether that $2.2 billion would be included in the possible equity stake, whether the company has received additional disbursements of its award since President Donald Trump took office, and on what schedule Intel would receive money under a possible equity stake.
Tan met with Trump at the White House last week, helping lay the groundwork for the latest discussions with Intel. The US president had previously taken issue with the executive, calling for Tan’s ouster over past ties to China. After the meeting, Trump praised Intel’s chief, saying he had “an amazing story.” Tan is expected to stay in the job despite Trump’s earlier criticisms, people familiar with the matter said last week.
Intel’s future has vexed Trump officials since they first entered office. The pioneering company has fallen behind world leader Taiwan Semiconductor Manufacturing Co. in the production of tiny electronic components that power everything from smartphones to artificial intelligence. While TSMC and South Korea’s Samsung Electronics Co. are expanding their US operations — with Chips Act support, having an American company like Intel building cutting-edge chips on domestic soil has been a priority for both the Trump and Biden administrations.
Biden officials, for example, tried to get companies like Nvidia Corp. and Advanced Micro Devices Inc. to consider using Intel as a manufacturing partner, and also explored long-shot ideas like a tie-up between Intel and GlobalFoundries Inc.
Earlier this year, Trump’s team held early-stage conversations with TSMC about potentially operating Intel’s factories — an arrangement from which TSMC has backed away. Trump officials have also internally floated the prospect of seeking an Intel investment from the United Arab Emirates. It’s unclear whether either of those approaches has progressed much past a thought exercise.
If the Trump administration moves forward with an Intel equity stake, that would fit into a recent pattern that’s seen Washington take a more aggressive role in strategic sectors. Trump’s team secured an agreement to receive a 15 per cent cut of certain semiconductor sales to China and took a so-called golden share in United States Steel Corp. as part of a deal to clear its sale to a Japanese rival.
The Intel idea also echoes the Defense Department’s unprecedented announcement last month that it will take a $400 million preferred equity stake in the little-known US rare-earth producer MP Materials Corp. That deal would make the Pentagon the company’s largest shareholder, with a roughly 15 per cent stake of the firm’s shares.
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Published on August 19, 2025
