Trump Administration Considers Taking Stake in Intel Amid Chipmaking Power Play

US Government Might Use Funds From the CHIPS Act to Buy a Stake in Intel

August has been a rollercoaster ride for Intel so far. Last Thursday, President Trump told the company's CEO to step down before abruptly reversing course, and now the administration is reportedly considering buying a stake in the struggling American chipmaker. Citing anonymous sources familiar with the discussions, Bloomberg reports that talks are still in the early stage; it's unclear how much of the company the government would buy or when. The US might use funds from the CHIPS and Science Act, signed into law by President Biden in 2022. It included $52.7 billion in funding to promote the US manufacture of semiconductor chips and help alleviate the chip shortage. Intel was awarded nearly $8 billion from that fund in the final days of the Biden administration. Instead, the Trump plan might use CHIPS Act money "to at least partially finance an equity stake in Intel," Bloomberg reports, though details have yet to be ironed out. The White House tells Reuters that, "Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration." The news is noteworthy given that Trump has railed against the CHIPS Act. In January, he called it a "ridiculous program" and argued that companies don't need money; they need incentives to build in the US. For Trump, those incentives are tariffs with ever-changing rates. Speaking before a joint session of Congress two months later, Trump told lawmakers, "Your CHIPS Act is a horrible, horrible thing. We give hundreds of billions of dollars, and it doesn't mean a thing. [Companies] take our money and they don't spend it. "You should get rid of the CHIPS Act and whatever's left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to," he added. Following calls for his ouster, Intel CEO Lip-Bu Tan met with Trump on Monday. "The meeting was a very interesting one. His success and rise is an amazing story," Trump then wrote in an uncharacteristically muted Truth Social post. "We appreciate the President's strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company," Intel said in its own statement. Intel has struggled in recent years, which is one reason it has a new CEO. It's currently going through mass layoffs that will see the company lose 24,000 roles by the end of 2025. So, Trump's shifting attitudes on federal subsidies aside, this deal may be a lifeline for Intel. In announcing the layoffs, Tan said Intel is "laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers." An extra curveball for all chip manufacturers is Trump's plan to tariff foreign-made chips. They could be 100%, 200%, or even 300%, or they could be nothing, depending on how much a company builds in the US. "If you're building in the United States of America, there's no charge," Trump said earlier this month. Intel recently pushed chip production for its pending Ohio plant to 2030 amid its financial woes. Reports about the Intel stake, meanwhile, come days after Nvidia and AMD agreed to pay 15% of all revenue made on AI chip sales to China directly to the US government, something Democrats argue might be unconstitutional. Like what you're reading? Don't miss out on our latest stories. Add PCMag as a preferred source on Google.

Trump weighs taking stake in Intel, Bloomberg News reports

Aug 14 (Reuters) - The Trump administration is in talks with Intel (INTC.O), opens new tab to have the U.S. government potentially take a stake in the struggling chipmaker, Bloomberg News reported on Thursday, citing people familiar with the plan. Such a move would mark another intervention by U.S. President Donald Trump in industries seen as vital to national security. Trump has pushed for multibillion-dollar government tie-ups in semiconductors and rare earths - for instance, a pay-for-play deal with Nvidia (NVDA.O), opens new tab and an arrangement with rare-earth producer MP Materials to secure critical minerals. Intel declined to comment on the report but said it was deeply committed to supporting Trump's efforts to strengthen U.S. technology and manufacturing leadership. White House spokesman Kush Desai said: "Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration." Intel's shares surged over 7% in regular trading and then another 2.6% after the bell. The discussions follow a meeting this week between Trump and Intel CEO Lip-Bu Tan. That meeting came days after Trump publicly demanded that Tan resign over his investments in Chinese tech companies, some linked to the Chinese military. Details of the stake and price are still being discussed, Bloomberg said. Ryuta Makino, an analyst at Intel investor Gabelli Funds, said it was likely that the U.S. government would take a stake in Intel because Trump wants the chipmaker to expand domestic manufacturing and to create more jobs. Intel warned last month that it may have to get out of the chip manufacturing business if it does not land external customers to make chips in its factories. It planned to slow construction work on new factories in Ohio. Tan, who took the top job just over six months back, has been tasked to undo years of missteps that left Intel struggling to make inroads in the booming AI chip industry dominated by Nvidia, while investment-heavy contract manufacturing ambitions led to heavy losses. "I think any deal that involves the U.S., as well as third-party investors (PE) likely has to come with tariffs that strongly encourage customers like Nvidia, AMD (AMD.O), opens new tab, Apple (AAPL.O), opens new tab to use Intel Foundry," said Ben Bajarin, CEO of market analysis firm Creative Strategies. It is not unusual for the U.S. government to take a stake in a company, but those have usually needed financial help. Though Intel's stock market value has tumbled in recent years and it has lost its industry leadership, its revenue remains stable at over $50 billion a year, and it was not clear to some investors that the chipmaker needs such direct government assistance. Reporting by Jaspreet Singh and Mrinalika Roy in Bengaluru; Additional reporting by Sayantani Ghosh; Editing by Sriraj Kalluvila and Diane Craft Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Mrinalika Roy Thomson Reuters Mrinalika is a business reporter. She has covered the energy and mining industry in North America for Reuters since 2022 and is based in India.

Intel shares jump after report of possible US stake in company

The article comes days after a meeting between Intel boss Lip-Bu Tan and US President Donald Trump, who had earlier accused Mr Tan of being "highly conflicted" due to his earlier ties to China. According to Bloomberg, the firm's spokesperson declined to comment on the discussions and said that Intel is "deeply committed to supporting President Trump's efforts to strengthen US technology and manufacturing leadership". The details of the stake and price are still being discussed, the report said. The reported move would be a "lifeline" for Intel, offering the company funding and government support, said tech analyst David Nicholson from The Futurum Group, a market research firm. The storied chipmaker has struggled in recent years after falling behind in the AI race, with rival Nvidia leaping ahead. Intel's stock market value has more than halved to $104 billion (£77bn) since 2020. The deal would signal a deeper "intertwining" of the government and private businesses in the US, following a trend seen elsewhere in places like China, Mr Nicholson told the BBC. This week, chip giants Nvidia and AMD agreed to pay the US government 15% of Chinese revenues, in another instance of the Trump administration's direct intervention in private enterprise. "Some folks will think that this is unfair that Intel is being propped up, but most will agree that it is strategically vital for the US," said Mr Nicholson. Intel's planned Ohio factory, which is reported to be a key part of talks with Washington, had been touted as a key part of the company's future. The firm had a goal to make the factory the world's largest chip manufacturing facility, but its development has since faced numerous delays. Though it is uncommon for the US government to directly support a single company, backing Intel could be a "special case" because the stakes are high for America's chipmaking edge, said tech analyst Austin Lyons. Intel is the US' best shot at competing with global rivals like TSMC and Samsung, and the Ohio plant would ensure that the country is able to make high-end semiconductors at home, he explained. Mr Tan, an American venture capitalist who took over as Intel's chief executive in March, has focused on getting the firm's finances in check and catching up in the booming AI chip industry. In a social media post last week, Trump called for Mr Tan's resignation, apparently referring to his alleged investments in companies that the US says are tied to the Chinese military.

Could Intel soon be part-owned by the US government? Trump saga takes its oddest turn yet

The company's $28 billion Ohio One campus could benefit from such investment The Trump administration is reportedly in talks over taking a stake in beleagured chipmaker Intel in its latest bid to boost US manufacturing, Reports from Bloomberg claim after the recent meeting between President Trump and Intel CEO Lip-Bu Tan - a relationship that's been threatened after the President called for Tan to resign over alleged ties to China, talks have reportedly been held over a deal. A potential government investment could include equity stakes, guaranteed purchases, loans and private financing, similar to the Pentagon's recent $400 million stake in MP Materials which recently brought on the provision of a $150 million loan. The news comes after a long period of uncertainty for Intel with multiple quarters of revenue decline. Things have already slowly started to turn around, though, with Intel seeing flat year-over-year revenue in its last quarter under the guidance of new CEO Lip-Bu Tan. "We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers. We are also taking the actions needed to build a more financially disciplined foundry," he said. Intel shares rose more than 7% following the report that the US Government could get involved in Intel's operations, however the deal remains unconfirmed with no agreement reached as yet. The White House explained, "discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration." Intel had already signed a deal with AWS in September 2024 to accelerate the development of chip manufacturing in Ohio, but progress has remained slow. As part of the deal, AWS was going to add $7.8 billion to expand its own data center operations in Central Ohio. In February 2025, EVP, Chief Global Operations Officer and GM for Intel Foundry Manufacturing, Naga Chandrasekaran, said Intel expects the first of its two Ohio fabs to begin operations between 2030 and 2031, with the second coming online around a year later.

Intel shares rise as Trump eyes latest chipmaker power play

Intel shares jumped after reports that the Trump administration is considering taking a stake in the struggling tech firm, marking the President's latest direct intervention in the private chipmaking industry. The potential investment would support Intel's plans to build a factory hub in Ohio, according to Bloomberg, and would come at a time when Intel has been cutting jobs as part of a cost cutting drive, having fallen behind rivals like Nvidia in the global AI chipmaking race. The size of the proposed stake is unclear, per the report, but it would be paid for by the U.S. government. White House spokesman Kush Desai said "discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration." Intel shares were up 10.7% on Friday morning, shortly after the bell. A stake in Intel would be President Donald Trump's latest try at intervening in the chipmaking industry. Earlier this week, the U.S. government announced a deal that would have two of Intel's rivals, Nvidia and Advanced Micro Devices, pay 15% of their revenues from sales in China to the state. Separately, in July, the Department of Defense said it would take a $400 million preferred stake in MP Materials, a U.S. company that mines and processes rare earth metals -- key ingredients for things like electric cars, wind turbines, and military tech. The reported deal with Intel would also mark a sharp turnaround after Trump demanded last week that its CEO Lip-Bu Tan resign over purported connections to the Chinese government, describing him as someone who's "conflicted" in his business dealings. "The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!" Trump wrote in an Aug. 7 social media post. Tan took over Intel in March, as the company was locked in negotiations with the Trump administration to shift its chip-making plants to a Taiwanese rival. However, Intel is seen by many as the best chance for the U.S. to compete with global rivals like TSMC, and the Ohio plant would help the country make sure it can make high-end semiconductors on home soil. Intel received $8 billion in direct federal funding under the bipartisan Chips and Science Act, which former President Joe Biden signed into law in 2022. That government cash was meant to be directed to fortify Intel's domestic computer chip manufacturing with new projects including the Ohio plant. Trump announced a new 100% tariff on semiconductor imports last week, but included an enormous caveat that could spare tech firms like Intel. U.S. companies that have planned a domestic spending spree in the country are likely to avoid the sizable import tax. Intel has stated it will pour $100 billion in new U.S. corporate spending over the next five years, a move it had announced before the 2024 election. Intel did not immediately respond to Quartz's request for comment. -- Joseph Zeballos-Roig contributed to this article.

Trump's Plan for 300% Semiconductor Tariffs Weighs on Chip Stocks, Except Intel. Here's Why

Crystal Kim is a New York-based markets and investing reporter with more than 10 years of experience. Prior to joining Investopedia, she wrote for Barron's, Bloomberg, and Axios. A potential deal with the Trump administration is shaping up to be a saving grace for Intel (INTC), which saw its shares climb Friday while other semiconductor stocks slid. President Trump told a group of reporters aboard Air Force One Friday morning that he could put tariffs on imported chips as soon as next week. "I'll be setting tariffs next week and the week after, on steel and on, I would say chips -- chips and semiconductors, we'll be setting sometime next week, week after," the president said in-flight, on the way to meet with Russian President Vladimir Putin in Alaska. "I'm going to have a rate that is going to be 200%, 300%," Trump said. The White House didn't immediately respond to a request for comment. The PHLX Semiconductor Index (SOX) was recently down more than 2%. Intel was among a handful of the index's constituents that was unscathed; shares were up nearly 6%. Reports that the Trump administration is considering taking a stake in Intel are giving the stock a boost. Discussions have included tapping the Chips Act -- of which Trump has been a critic -- to partially fund a stake in Intel, according to Bloomberg, citing people familiar with the matter. Deal talks follow on the heels of Intel CEO Lip-Bu Tan's meeting with President Trump on Monday, after Trump publicly called for Tan's resignation, citing purported China conflicts. A White House spokesperson told Investopedia any discussions "should be regarded as speculation unless officially announced by the Administration." Intel did not immediately respond to queries about the talks. Some analysts see the Trump administration as a potential "hero customer," which Intel could use to fund development for its 14A process, a next-gen chip manufacturing technology that could boost chip speeds. "Intel could of course use money to help capitalize the fabs given the heavy losses and cash burn, and help to support them during the (likely) years it will take to build up substantial customer base," Bernstein analysts led by Stacy Rasgon wrote in a report Friday. Intel is already leaning on private equity deals to support building out semiconductor fabrication plants in and outside the U.S. However, what Trump might want in return is an outstanding question, with investors waiting to see if Trump can "Make Intel Great Again," the analysts said. The administration recently secured revenue-sharing deals with Nvidia (NVDA) and Advanced Micro Devices (AMD) in exchange for export licenses to resume sales of key AI chips to China. Other market observers including Jim Cramer, and Morningstar's Brian Colello also said Intel could likely use the help. "A stake could go a long way toward finishing what Gelsinger couldn't afford to build but did it anyway," Cramer tweeted Friday, referencing former Intel CEO Patrick Gelsinger, who stepped down in December.

US weighs taking stake in Intel: Bloomberg - The Economic Times

The Trump administration is reportedly considering taking a stake in Intel to support the struggling chipmaker. Talks followed a meeting between Trump and CEO Lip-Bu Tan, amid national security concerns and delays in Intel's Ohio chip plants. The move aims to revitalise US chip leadership and manufacturing strength.The Trump administration is in talks with Intel to have the US government potentially take a stake in the struggling chipmaker, Bloomberg News reported on Thursday, citing people familiar with the plan. Intel's shares surged over 7% in regular trading and then another 2.6% after the bell. The plan stems from a meeting this week between President Donald Trump and Intel CEO Lip-Bu Tan, according to the report. The meeting came days after Trump publicly demanded the resignation of Tan over his investments in Chinese tech companies, some linked to the Chinese military. Intel declined to comment on the report but said it was deeply committed to supporting President Trump's efforts to strengthen US technology and manufacturing leadership. "Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration," said White House spokesman Kush Desai. The details of the stake and price are still being discussed, according to the report. Any agreement and potential cash infusion will help the years-long efforts to turn around the company's fortunes. Once the undisputed leader in chip manufacturing, Intel has lost its position in recent years. The chipmaker's stock market value has plummeted to $104 billion from $288 billion in 2020. Intel's profit margins - once the envy of the industry - are also at about half their historical highs. Tan has been tasked to undo years of missteps that left Intel struggling to make inroads in the booming AI chip industry dominated by Nvidia, while investment-heavy contract manufacturing ambitions led to heavy losses. Any agreement would likely help Intel build out its planned chip complex in Ohio, Bloomberg reported. Intel's planned $28 billion chip fabrication plants in Ohio have been delayed, with the first unit now slated for completion in 2030 and operations to begin between 2030 and 2031, pushing the timeline back by at least five years. National security Taking a stake in Intel would mark the latest move by Trump, a Republican, to deepen the government's involvement in the US chip industry, seen as a vital security interest to the country. Earlier this week, Trump made a deal with Nvidia to pay the US government a cut of its sales in exchange for resuming exports of banned AI chips to China.

Intel's Potential US Government Stake Could Redefine Its Turnaround Trajectory | Investing.com UK

Intel Corporation shares extended their recent rally in premarket trading Friday, rising 2.72% to $24.51 following reports that the Trump administration is exploring taking a stake in the struggling chipmaker. The development comes just days after President Trump publicly criticized Intel CEO Lip-Bu Tan over alleged ties to Chinese military-linked companies, adding another layer of complexity to the semiconductor giant's ongoing turnaround efforts. The reported government intervention represents an unprecedented move that could provide Intel with crucial funding and strategic support as it battles to regain its competitive edge in the AI chip race. According to serveral news reports, the Trump administration is in discussions about acquiring a stake in Intel to support the company's ambitious plans to build a major manufacturing hub in Ohio. The reported deal would represent a significant government intervention in private enterprise, with the size and details of the potential stake still under negotiation. White House spokesman Kush Desai cautioned that "discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration," while Intel declined to comment but emphasized its commitment to supporting President Trump's technology and manufacturing leadership efforts. The timing of these discussions is particularly notable given the recent tension between President Trump and Intel CEO Lip-Bu Tan. In a social media post last week, Trump called for Tan's resignation, apparently referencing alleged investments in companies tied to the Chinese military. Despite this public criticism, reports suggest the two met recently to discuss the potential government stake, highlighting the strategic importance Intel holds for US national security interests. Tech analysts view the potential government investment as a "lifeline" for Intel, which has struggled to keep pace with rivals like Nvidia in the AI chip boom. The company's stock market value has more than halved to $104 billion since 2020, and it reported a staggering $20.5 billion net loss over the trailing twelve months. A government stake would not only provide crucial funding but also signal Washington's commitment to maintaining America's semiconductor manufacturing capabilities at a time when global chip competition has intensified dramatically. Intel shares traded at $24.51 in premarket activity as of 5:25 AM EDT Friday, representing a 2.72% gain from Thursday's closing price of $23.86. The premarket advance builds on Thursday's impressive 7.38% surge that followed the initial reports of potential government involvement. The stock has shown remarkable resilience recently, posting year-to-date gains of 19% despite the company's fundamental challenges, significantly outpacing the S&P 500's 9.98% return over the same period. Key financial metrics paint a challenging picture for the semiconductor giant, with the company reporting negative earnings per share of $4.77 over the trailing twelve months and no forward dividend yield. Intel's market capitalization stands at $104.4 billion, while trading volume on Thursday reached 168.9 million shares, nearly double the average volume of 88 million. The stock's 52-week range spans from $17.67 to $27.55, with current levels approaching the midpoint of this range. Analyst sentiment remains mixed, with price targets ranging from a low of $14 to a high of $28, and an average target of $21.95 sitting below current trading levels. The potential government stake could dramatically alter this outlook, as it would provide Intel with both financial resources and strategic backing needed to compete more effectively with Asian rivals like TSMC and Samsung. For investors, the development represents a potential inflection point that could either validate Intel's turnaround strategy or highlight the severity of the company's competitive challenges requiring government intervention. *** Looking to start your trading day ahead of the curve?