Trump Administration Considers Taking Equity Stake in Intel and Other Chipmakers

Trump eyes up Intel: What the White House's reported 10% stake could mean for the struggling manufacturer

Intel wouldn't be completely out of the woods, even with the benefit of government backing. In a surprising turn of events on Monday, it was reported that the U.S. government was considering buying a 10% stake in Intel using CHIPS and Science Act in a bid to provide the struggling chipmaker much-needed cash. Coincidentally, SoftBank agreed to acquire Intel stock worth $2 billion, offering Intel another boost. But can an approximately $12.9 billion injection in liquid cash help Intel turn its fortunes? The Trump Administration is reportedly studying whether to convert up to $10.9 billion in promised grants under the CHIPS and Science Act into equity. iGiven the current stock price, it would give the U.S. government a 10% stake in the company. That amount would equal about $10.5 billion at Intel's current market capitalization of around $103 billion, which is below the value of the company's real estate and fabrication facilities. However, this decision has yet to officially happen, but there are strong signs pointing toward it. Under the CHIPS and Science Act, Intel was awarded a package of $7.86 billion in grants and access to up to $11 billion in loans. The latest figure from the Bloomberg report suggests that a potential purchase of equity in Intel would exceed the previously agreed grant, from $7.86 billion, to a reported $10.9 billion, which is $3.3 billion more than previously agreed upon. The subsidies were structured as reimbursements tied to the buildout of new fabs and construction milestones, so the funds were to be released in tranches over several years. Intel had already received $2.2 billion of those funds in late January 2025, according to Techcrunch. The new thing about the Trump administration's plan is not more money, but a different form of support. Instead of gradually paying the grants, Washington would convert part (or all) of Intel's $10.9 billion package into equity and Intel in a lump sum, becoming the largest shareholder in the company, with a 10% stake. As a result, Intel would not get any additional funds from the U.S. government. Intel would receive the funds sooner, and in a lump sum, while the U.S. government would move from a grantor to a shareholder. Intel is a strategically important company for the United States both in terms of economic and national security. Processors made using leading-edge process technologies are crucially important for American companies, such as Apple, AMD, Dell, HP, Nvidia, Qualcomm, and dozens of others. Without advanced silicon, these companies will quickly lose competitive positions to Asian rivals, which might result in trillions in losses to the U.S. economy. Intel directly employs tens of thousands in high-skilled engineering and factory jobs, though the company enacted significant layoffs in June 2025. There's a ripple effect across suppliers, construction, and local economies, with the large number of people Intel employs. Additionally, large projects -- such as the Ohio campus, known as the Silicon Heartland -- are drivers of national and local economies, and are political symbols of American industrial strength and job creation. Advanced military and intelligence systems increasingly depend on advanced processors, many of which are now produced by TSMC in Taiwan or Samsung in South Korea. However, a domestic supplier ensures that chips intended for defense and aerospace programs are securely sourced and not exposed to supply chain disruptions or espionage risks. Also, having a strong U.S. chipmaker improves America's position in negotiations with allies (Japan, South Korea, Taiwan, and the E.U.) that are also investing in semiconductors, and adversaries like China. Intel is the only U.S.-based company with ambitions to make chips using leading-edge process technologies on American soil. While both TSMC and Samsung Foundry intend to build chips for U.S. companies in Arizona and Texas using advanced production nodes, they will not be their latest nodes. In that sense, it is crucial for the U.S. government not only to keep Intel alive but also to ensure that it prospers. Losing Intel as a major player in the semiconductor industry would erode the U.S.'s foothold in one of the most important industries for the 21st-century economy, and make the country vulnerable to supply chain interruptions or foreign espionage initiatives. Intel's fab projects in Arizona and Ohio are part of the U.S. push to re-shore advanced manufacturing, so the country is not entirely dependent on foreign foundries. While Intel is about to begin high-volume manufacturing (HVM) at its Fab 52 and Fab 62 facilities in Arizona, HVM in Ohio has been pushed away from late 2025, to before 2030. But the importance of the Silicon Heartland in Ohio is hard to overestimate. Intel's Silicon Heartland project in Ohio -- the company's first greenfield manufacturing site in decades -- has heavily relied on government funding under the CHIPS Act, is instrumental to Intel's foundry ambitions. The planned Ohio site will span about 1,000 acres (4 km²), with room for as many as eight chip fabs along with facilities for suppliers and partner firms. Intel projected that a complete build-out could cost roughly $100 billion, while the initial phase was budgeted at about $28 billion for two fabs and support facilities. If Intel had four new fabs capable of producing chips on its latest process technologies, 20A and 18A, by late 2025 or early 2026, it would have capacity for its own products and foundry customers. However, as the semiconductor market shrank in 2022 - 2023 and Intel failed to get commitments from big customers, it delayed multiple projects and scaled down its capital expenditures in 2023 - 2024. As a result, while the Arizona fabs are enough to serve Intel's own needs and some foundry customers, it is unknown whether Intel can accommodate a large foundry client, such as Apple, Nvidia, or Qualcomm. If Intel plans to land a major foundry customer, it needs additional production capacity that is specifically tailored for contract chipmaking (i.e., a high-mix/low-volume fab). Since Intel is preparing to build in Ohio, the best way for the company to build additional capacity likely is to construct at least one fab in Ohio to produce chips using its 18A-P or 14A process technologies. It's also possible that Intel could build an additional fab at its Arizona site, which has all support facilities in place and a supply chain around it. But, no matter where the new fab is -- which will have both current-generation Low-Numerical Aperture (NA) and next-generation High-NA lithography tools installed -- it will cost between $20 billion and $30 billion. This would be a lot of money for Intel, which bleeds billions every quarter. To add to the issue, Intel needs to begin construction as soon as possible to have the available capacity for prospective foundry partners in the years ahead. According to Intel's latest financial reports, the company has $21.04 billion in cash and cash equivalents. So, an influx of $12 billion could be instrumental in stabilizing the company and accelerating the Ohio site buildout, or starting a new fab phase in Arizona. However, a lot depends on timing. Since support facilities and supply chains already exist in Arizona, it could be cheaper and faster to add a new fab module in Arizona, rather than accelerating the greenfield site in Ohio. The combined infusion of $10.9 billion from the U.S. government and $2 billion from SoftBank carries weight well beyond the balance sheet, serving as both a financial lifeline and a symbolic endorsement of Intel, following a rocky patch. For the U.S. government, converting CHIPS Act support into equity transforms subsidies into direct political ownership, which signals to both the industry and allies that America is serious about rebuilding advanced chipmaking capabilities, particularly through the high-profile Ohio project. Also, SoftBank's $2 billion bet highlights Masayoshi Son's belief in Intel's design and production potential and its relevance amid the ongoing AI revolution. Together, these moves represent a dual vote of confidence -- one stemming from national strategy, the other from commercial opportunity and the strategic importance of Intel. This could reassure markets and strengthen Intel's credibility at a moment when doubts over its competitiveness are quite high. However, Intel needs to invest money in capacity for its future major foundry customers sooner, rather than later.

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.

US examines equity stake in chip makers for CHIPS Act cash grants, sources say

0 seconds of 0 secondsVolume 0% Press shift question mark to access a list of keyboard shortcuts Keyboard ShortcutsEnabledDisabled Shortcuts Open/Close/ or ? Play/PauseSPACE Increase Volume↑ Decrease Volume↓ Seek Forward→ Seek Backward← Captions On/Offc Fullscreen/Exit Fullscreenf Mute/Unmutem Decrease Caption Size- Increase Caption Size+ or = Seek %0-9 Subtitle Settings OffEnglish Font Color White Font Opacity 100% Font Size 100% Font Family knowledge-bold Character Edge None Edge Color Black Background Color Black Background Opacity 85 Window Color Black Window Opacity 0% Reset WhiteBlackRedGreenBlueYellowMagentaCyan 100%75%50%25% 200%175%150%125%100%75%50% ArialCourierGeorgiaImpactLucida ConsoleTahomaTimes New RomanTrebuchet MSVerdana NoneRaisedDepressedUniformDrop Shadow WhiteBlackRedGreenBlueYellowMagentaCyan WhiteBlackRedGreenBlueYellowMagentaCyan 100%75%50%25%0% WhiteBlackRedGreenBlueYellowMagentaCyan 100%75%50%25%0% Auto1080p720p576p540p480p360p288p180p 00:00 00:00 00:00 WASHINGTON/SAN FRANCISCO, Aug 19 (Reuters) - U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel (INTC.O), opens new tab as well as other chip companies in exchange for grants under the CHIPS Act that was meant to spur factory-building around the country, two sources said. As part of a plan to revive U.S. manufacturing - a key Trump agenda - Lutnick said earlier on Tuesday the U.S. government wants an equity stake in Intel in exchange for cash grants approved by the administration of former President Joe Biden. Now Lutnick wants to expand that plan to other companies, according to a White House official and a person familiar with the situation. The Trump administration has recently made unusual deals with U.S. companies, including allowing AI chip giant Nvidia (NVDA.O), opens new tab to sell its H20 chips to China in exchange for the U.S. government receiving 15% of those sales. The Pentagon is slated to become the largest shareholder in a small mining company to boost output of rare earth magnets. The government's intervention in corporate matters has worried critics who say President Donald Trump's actions create new categories of corporate risk and that a bad bet could mean a hit to taxpayer funds. Much of the funding under the CHIPS Act has not yet been dispersed for companies such as Micron (MU.O), opens new tab, Taiwan Semiconductor Manufacturing Co (2330.TW), opens new tab, Samsung (005930.KS), opens new tab and Intel. TSMC and Intel declined comment. Micron, Samsung and the White House did not respond to requests for comment on whether Lutnick is considering more stakes. Taking lawmaker questions in Taipei on Wednesday and asked whether the U.S. government could take a stake in TSMC, Taiwan Economy Minister Kuo Jyh-huei said his ministry would consult with the company, which he pointed out was private and not a state-owned enterprise. "We will also discuss with the National Development Council, as it is a shareholder of TSMC. We will thoroughly understand the underlying meaning of the U.S. Commerce Secretary's remarks, but this will require some time for discussion and assessment," Kuo said. The two sources told Reuters on Tuesday that Treasury Secretary Scott Bessent is also involved in the CHIPS Act discussions, but that Lutnick is driving the process. The Commerce Department oversees the $52.7 billion CHIPS Act money. Lutnick has been pushing the equity idea, the sources said, adding that Trump likes the idea. White House Press Secretary Karoline Leavitt confirmed earlier that Lutnick was working on a deal with Intel to take a 10% government stake. "The president wants to put America's needs first, both from a national security and economic perspective, and it's a creative idea that has never been done before," she told reporters. Speaking on CNBC, Lutnick said the U.S. wants a return on its "investment". "We'll get equity in return for that ... instead of just giving grants away," he said. President Donald Trump has previously said he wanted to kill the CHIPS Act program. Lutnick's comments suggested any stake would be non-voting, meaning it would not enable the U.S. government to tell the company how to run its business. His comments came a day after SoftBank Group (9984.T), opens new tab agreed to invest $2 billion in Intel, which has struggled to compete after years of management blunders. "The Biden administration literally was giving Intel money for free and giving TSMC money for free, and all these companies just giving the money for free, and Donald Trump turned it into saying, 'Hey, we want equity for the money. If we're going to give you the money, we want a piece of the action for the American taxpayer'," Lutnick said. Reporting by Andrea Shalal and David Shepardson; Additional reporting by Katharine Jackson, Nandita Bose and Max A. Cherney, and Wen-Yee Lee, Jeanny Kao and Ben Blanchard in Taipei; Editing by Andrew Heavens, Andrea Ricci, Rod Nickel, David Goodman and Michael Perry Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Mergers & Acquisitions * Corporate Counsel * Corporate Governance * Public Policy Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

US Senator Sanders favors Trump plan to take stake in Intel and other chipmakers

WASHINGTON, Aug 20 (Reuters) - Liberal U.S. Senator Bernie Sanders on Wednesday threw his support behind President Donald Trump's plan to convert U.S. grants to chipmakers, including $10.9 billion for Intel, into government stakes in the companies. "If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment," Sanders, an Independent who caucuses with Democrats, said in a statement to Reuters. The awards were part of the 2022 Chips and Science Act, which sought to lure chip production away from Asia and boost American domestic semiconductor output with $39 billion in subsidies. But Commerce Secretary Howard Lutnick is now looking into the government taking equity stakes in embattled Intel and other chipmakers in exchange for the grants, sources told Reuters on Tuesday, as the Trump administration seeks "equity" in return for "investments." The unusual alignment between Sanders and President Trump on government ownership stakes in private companies highlights a marked shift by Trump toward policies of state intervention in the economy that are typically associated with the left. Since Trump took office for a second time in January, he agreed to allow AI chip giants Nvidia (NVDA.O), opens new tab and AMD to sell AI chips to China in exchange for the U.S. government receiving 15% of revenues from the sales. The Pentagon is set to become the largest shareholder in a small mining company to boost output of rare earth magnets. And the U.S. government negotiated for itself a "golden share" with certain veto rights as part of a deal to allow Nippon Steel to buy U.S. Steel. Liberal Senator Elizabeth Warren, however, who has supported the government taking a stake in Chips Act award recipient companies in the past, was not ready to give Trump any credit for keeping large corporations in line. "Donald Trump seems to have stumbled on an idea that I pushed years ago to promote corporate accountability," she said in a statement to Reuters. "The president just saying he wants the public to have a stake in a major company isn't the same as having a real strategy to rein in stock buybacks, onshore jobs, and support long-term economic growth in America." Sanders and Warren had proposed an amendment to the Chips Act that would have forbidden the Commerce Department from granting a Chips Act award without the Treasury Department receiving a warrant, equity stake or senior debt instrument issued by the recipient company. "I am glad the Trump administration is in agreement with the amendment I offered three years ago," Sanders said. "Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return." Much of the funding for Chips Act award recipients such as Micron (MU.O), opens new tab, Taiwan Semiconductor Manufacturing Co (2330.TW), opens new tab and Samsung (005930.KS), opens new tab has not been disbursed. Reporting by Alexandra Alper; Editing by Edmund Klamann and Alison Williams Our Standards: The Thomson Reuters Trust Principles., opens new tab

Trump administration weighs 10% stake in Intel via Chip Act grants, making government top shareholder

Intel investors had initially welcomed news of the government investment, which resulted in a share rally of nearly 9% on Aug. 14. The report noted, however, that it remains unclear if the idea has gained traction broadly within the administration or whether officials have broached the possibility with affected companies. It added that the exact size of the stake remains in flux, and it remains unclear whether the White House will actually proceed with the plan. Intel and the White House did not immediately respond to CNBC's queries regarding the report. Intel, once a dominant force in the U.S. chip industry, has fallen behind global competitors in advanced chip manufacturing. Reviving the former U.S. chip champion has become a national priority in Washington, with reports about a potential government stake in the company first circulating last week. The company has been the largest recipient of the 2022 Chips Act, passed with bipartisan support under the Biden administration, as part of efforts by Washington to revitalize U.S. leadership in semiconductor manufacturing. The bill allocated $39 billion in grants for American semiconductor manufacturing projects, with funding committed to many of the world's chipmakers such as TSMC and Samsung, as well as American chip companies such as Nvidia, Micron and GlobalFoundries. U.S. President Donald Trump, though supporting the general goals of the Chips Act, has been a vocal critic of the bill and even called for its repeal earlier this year. While republican lawmakers in Washington have been reluctant to act on that call, U.S. Commerce Secretary Howard Lutnick said in June that the administration was renegotiating some of the bill's grants. If Intel's Chip Act funds were to be converted into a potential government stake in the company, it could decrease the total amount of capital infused into the company as part of any deal by Washington. However, it would serve as the latest example of the Trump administration's interest in building government-backed national champions in strategic industries. Intel has struggled to gain an advantage in the artificial intelligence boom and has yet to capture a significant customer for its manufacturing business despite spending heavily on it. Some analysts have argued that government intervention is essential for the struggling chipmaker and for the sake of U.S. national security. Others contend that Intel's problems are deeper than funding, and it is not clear how the government can help with that. Analysts have also noted that Trump may be able to sway companies to buy Intel chips or assist indirectly, through tariffs and regulation. On Tuesday, it was announced that SoftBank was investing $2 billion in Intel. According to LSEG, the investment is worth about 2% of Intel, making SoftBank the fifth-biggest shareholder. Masayoshi Son, Chairman & CEO of SoftBank Group, said: "This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role." Intel investors had initially welcomed news of the government investment, which resulted in a share rally of nearly 9% on Aug. 14. Shares of Intel fell over 3% on Monday on the Bloomberg report, but rebounded by more than 5% in overnight trading on the trading platform Robinhood following news of a Softbank investment. Intel CEO Lip-Bu Tan, who was appointed in March 2025, met with Trump at the White House last week, after the U.S. president had called for his ousting due to his past ties to China. After the meeting, Trump had changed his tune on the Intel chief, saying he had "an amazing story." It's unclear if a potential government stake in the company had been discussed at the time.

Trump thinks owning a piece of Intel would be a good deal for the US. Here's what to know

SAN FRANCISCO (AP) -- President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the Trump administration's involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers. What's happening? The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. Why would Trump do this? In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Didn't Trump want Intel's CEO to quit? That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." Why would Intel do a deal? The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Would this deal be unusual? Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Would the government run Intel? U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. What government grants does Intel receive? Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bargain," Lutnick told CNBC. "It's obvious that it's the right move to make."

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.

U.S. government could take a 10 percent stake in Intel, report says

The Trump Administration is reportedly in talks with Intel for a roughly $10 billion investment in the languishing chipmaker.. According to Bloomberg via unnamed White House insiders, the U.S. government is looking at a 10 percent stake in the company, or around $10.5 billion, based on its market value. The terms of the deal, or whether it even happens, are still uncertain. But one option could be converting grants awarded under the CHIPS Act into equity. The law was enacted by the previous Biden Administration to provide federal funds for domestic semiconductor manufacturing. Amid the AI boom, Intel has fallen behind foreign competitors like Taiwan Semiconductor Manufacturing Co. (TSMC) and U.S. chip giant Nvidia. President Trump has made it a priority to boost chip manufacturing in the U.S. and secure a competitive edge against foreign powers such as China. One of the three recent AI executive orders signed by Trump promotes American technology domestically and abroad. And one of his first tech-related actions as president was announcing the Stargate Project, a $500 billion venture with OpenAI, Oracle, and others to invest in AI infrastructure. Intel, which was founded in 1968, has a long legacy of semiconductor manufacturing, but has failed to capitalize on the sophisticated GPUs that power AI models. Even before the mainstream emergence of AI, many companies moved their manufacturing abroad. In 2020, Apple ended a 15-year partnership with Intel for its devices and tapped TSMC in Taiwan to make its chips, opting for cheaper, more advanced processors. A U.S. government investment could revive Intel's flagging status and line up with the Trump Administration's plans to produce American-made tech. This report comes after Trump met with Intel CEO Lip-Bu Tan last week to reportedly discuss a deal.

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.

Trump admin pours cold water on its hot Intel deal

The Trump administration wants to help struggling U.S. chipmaker Intel, which today received a $2 billion vote of confidence from Japan's SoftBank. Catch up quick: The U.S. government would soon acquire around a 10% equity stake in Intel, whose products division has been supporting its foundry. * The White House then would put pressure on major U.S. tech companies to buy Intel chips or use its foundry, either by making a compelling national security case or (more likely) via an array of financial carrots and sticks. * Maybe there would even be a move to split the company, taking the foundry private. Driving the news: Treasury Secretary Scott Bessent was interviewed on Tuesday morning by CNBC. * Bessent confirmed that the U.S. government is in talks to take an equity stake, via the conversion of untapped CHIPS Act loans (logistical details of which remain murky). * Then he poured cold water on finding new customers for Intel. * "The last thing we're going to do is take the stake and then try to drum up business," Bessent said. "There's no talk of trying to force companies to try and buy from Intel." Zoom in: Bessent may be playing coy, not wanting to spook Silicon Valley before he even has a deal in place. * If he's sincere, you're going to need a ton of AI to figure out how this isn't burning taxpayer dollars. Why spend $10 billion to "stabilize" a company without trying to solve the main reason it's unstable in the first place? * To be clear, there are all sorts of second-order issues with the U.S. government bluntly coercing U.S. companies to alter their strategic decisions. But that's a slippery slope on which the Trump 2.0 administration has shown no hesitance to slide. The bottom line: If you're going to create a national champion, it only makes sense to ensure there's a well-attended parade. Otherwise, it may be a short-lived title.

Trump in talks for government to take 10% stake in Intel: What we know

President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the Trump administration's involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers. The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bargain," Lutnick told CNBC. "It's obvious that it's the right move to make."

Lutnick says U.S. wants Intel stake for chip grant funding

Commerce Secretary Howard Lutnick has confirmed investment talks between the government and Intel, adding that the U.S. wants an equity stake in return for grant funding, in a move that could open the door for similar deals with other chipmakers. Lutnick said Tuesday that the state would not have voting rights in the company. "It's not governance, we're just converting what was a grant under Biden into equity," he said in a CNBC interview. "Non-voting." "Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer? And the answer Donald Trump has is we should get an equity stake for our money," he added. "So we'll deliver the money which was already committed under the Biden administration, we'll get equity in return for it." Lutnick was referring to grants allocated to the company under the U.S. bipartisan Chips and Science Act into equity. Intel was handed a combined $10.9 billion in grants under the act for commercial and military manufacturing, which former President Joe Biden signed into law in 2022. Intel shares jumped on Tuesday following the news, pushing its market value to around $111 billion. If the stake were worth the entirety of the grant funding, it would equate to a little less than 10% of the company as of Aug.19. The potential investment, first reported last week, would support Intel's plans to build a factory hub in Ohio and would come at a time when Intel has been slashing jobs as part of a cost-cutting drive, having fallen behind rivals like Nvidia and Taiwan Semiconductor Manufacturing (TSMC) in the global AI chipmaking race. A stake in Intel would be President Donald Trump's latest try at intervening in the chipmaking industry. The move to try to secure a stake in return for grant funding could even indicate a willingness to do the same with other chipmakers who are in line for grants. "Imagine this: the Biden administration was literally giving Intel -- for free, and giving TSMC money for free and all these companies just giving them money for free," Lutnick said. "Donald Trump turns that into saying, 'Hey, we want equity for the money,'" the secretary continued. "How could that not be smarter, better and more important for the American taxpayer than just free money?" Intel is seen by many as the best chance for the U.S. to compete with global rivals. However, it has struggled amid stagnant sales and ongoing losses in recent years. Already under Tan it has announced plans to lay off 20% of its staff to pare back bureaucracy within the company. "We need to make our own chips here. We cannot rely on Taiwan," Lutnick said. Separately on Tuesday, Nvidia is reportedly working on a new AI chip for China that is more powerful than its H20 chip that it currently sells to the country. The new product is tentatively called the B30A, Reuters reported, citing people familiar, and it is thought to be based on Nvidia's Blackwell chip architecture. When asked about the new chip, Lutnick did not rule out allowing Nvidia's chief executive Jensen Huang to sell the more powerful product to China. "Of course, he would like to sell a new chip to China," Lutnick said. "I've listened to him pitch the president, and the president listens to our great technology companies, and he'll decide how he wants to play." Last week, the U.S. government announced a deal that would have Nvidia and another chipmaker, Advanced Micro Devices, pay 15% of their revenues from sales in China. The White House, Intel and Nvidia did not immediately respond to Quartz's requests for comment.

Bernie Sanders and Donald Trump form an unlikely alliance over billions in chipmaker subsidies

The unlikely duo -- a self-described democratic socialist from Vermont and a populist-leaning Republican president -- now agree on one shift in America's industrial policy: If the government is going to hand out billions, taxpayers should own a piece of the pie. "If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment," Sanders told Fortune. The subject of this unprecedented convergence is Intel, the struggling chipmaker that received $10.9 billion under the 2022 CHIPS and Science Act. The injection was part of a broader $39 billion subsidy designed to lure semiconductor production away from Asia. The Trump administration is now pushing to exchange some of those grants for government ownership stakes, which rattled markets and sent Intel's stock plummeting 6% since the announcement. Sanders has long criticized the CHIPS Act as corporate welfare for some of the world's most profitable technology companies. Back in 2022, he and U.S. Sen. Elizabeth Warren (D-Mass.) proposed an amendment requiring the Treasury Department to take warrants, equity stakes, or senior debt whenever federal money went to private chipmakers. However, that amendment failed. Now, three years later, Trump is reviving the idea, and Sanders is applauding. "I am glad the Trump administration is in agreement with the amendment I offered three years ago," Sanders said. "Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return." For Trump, the move represents a dramatic embrace of state intervention in the private sector, a tactic he has increasingly leaned on in his second term. This month, Trump called for Intel's CEO Lip Bu-Tan's resignation over past ties to Chinese firms. Earlier this year, the administration struck a deal allowing Nvidia and AMD to sell AI chips to China in exchange for Washington pocketing 15% of the revenues. It's an economic strategy that looks less like Reaganism, and more of a mashup between populism and state-capitalism. In that case, Trump and Sanders are two apt representatives for the merging camps. The White House did not respond to Fortune's request for comment by press time. Investors aren't thrilled by this new strategy ofpunishing Intel stock for the uncertainty about what government ownership entails for the government. Intel has already been seeking private capital infusions -- including a $2 billion injection from Japan's SoftBank this month -- to shore up its balance sheet. The Commerce Department, led by Secretary Howard Lutnick, is still reviewing how to implement the plan, according to Reuters. But the optics are clear: The United States, it seems, is no longer content to subsidize semiconductor manufacturing without strings attached. For Sanders, it's validation; and for Trump it's a newfound strategy. But for Intel, which was once the undisputed king of U.S. chipmaking, it's yet another twist in an already turbulent year.

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.

US government pushes for 10% Intel stake amid US-China chip war

The Trump administration is moving to convert billions in CHIPS Act subsidies into a 10% equity stake in Intel. The first-of-its-kind deal would make Washington the company's largest shareholder and signal a new era of direct government ownership in Silicon Valley. The US government could become the largest shareholder in Intel, one of the most important US technology companies, marking the first time Washington has sought ownership in a Silicon Valley icon. US Commerce Secretary Howard Lutnick on Tuesday confirmed the US government is vying for a 10% stake in Intel, part of an unusual deal that would deepen the Trump administration's financial ties with the major chipmaker. The move comes weeks after US President Donald Trump called for Intel's CEO Lip-Bu Tan to resign due to what he claimed was a conflict of interest. This allegation was linked to Tan's previous role as a venture capitalist in China. Although rare, it is not unprecedented for the US government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the recession in 2008, when the government injected nearly $50 billion (€42.94bn) into General Motors in return for a roughly 60% stake in the automaker when it was on the verge of bankruptcy. At the time, even that bailout was seen as controversial despite GM's hardships because it was perceived as blurring the lines between state control and US free market principles. Unlike many European companies, US ones have insisted on a complete separation between government and private ownership of enterprises. The government ended up with a roughly $10bn (€8.6bn) loss after it sold its stock in GM. Intel historically led the world in semiconductor production, tied in particular to PC production and Microsoft. When the iPhone launched in 2007, Intel-dominated PC chips nonetheless failed to win a foothold in smartphones and tablets. ARM-based chips, which are used by Apple and Samsung, became the mobile standard, leaving Intel stuck in the declining PC market. Intel has also lagged in the AI race, with their traditional central processing units not being well-suited for AI workloads. On the other hand, competitors like Nvidia have surged ahead. The CHIPS and Science Act, often referred to as just the CHIPS Act, was a bill passed in August 2022 by former US President Joe Biden in order to boost the local US semiconductor industry. COVID-19 supply chain disruptions and US-China tech tensions highlighted how dependent the US had become on foreign-made chips, not just for consumer electronics, but also defence, cars, AI and infrastructure. In November 2024, the US Department of Commerce finalised an agreement to grant Intel up to $7.86bn (€6.75bn) in direct funding through the CHIPS Act to support their semiconductor manufacturing and advanced packaging operations across Arizona, New Mexico, Ohio and Oregon. Intel was among the biggest beneficiaries of the program, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the CHIPS program. The company has received about $2.2bn (€1.89bn) of the $7.8bn (€6.75bn) pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve US taxpayers if it is turned into Intel stock, which he said would be in the form of non-voting shares so the government wouldn't be able to use the stake to sway how the company is managed. "We think America should get the benefit of the bargain," Lutnick told CNBC as he explained why Trump is pushing for the deal. "It's obvious that it's the right move to make." The notion of the US government holding a huge stake in Intel would have seemed inconceivable back in the company's heyday when its processors were powering a personal computer boom that began in the mid-1970s. But Intel's ongoing struggles also means the US government is taking on a risky investment. The US government's negotiations to become a major Intel shareholder are coming on the heels of a $2 billion (€1.7bn) investment Japanese technology giant SoftBank Group, disclosed late on Monday. SoftBank is accumulating its 2% stake in Intel at $23 (€19.70) per share -- a slight discount from the stock's price when its investment was announced. Intel's shares surged nearly 7% to close at $25.31 (€21.74) on the news of SoftBank's big bet on Intel, coupled with Trump's plans for the company. SoftBank invests in an array of companies that it sees as holding long-term potential. It has been stepping up investments in the United States since Trump returned to the White House. In February, its chairman Masayoshi Son joined Trump, Sam Altman of OpenAI and Larry Ellison of Oracle in announcing a major investment of up to $500bn (€429.38bn) in a project to develop specific artificial intelligence infrastructure for OpenAI called Stargate. "Semiconductors are the foundation of every industry," Son said in a statement. "This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role." Trump's interest in Intel is also being driven by his desire to boost chip production in the US, which has been a focal point of the trade war that he has been waging throughout the world since he returned to the White House earlier this year for his second term in office. "We want Intel to be successful in America," Lutnick said during his CNBC interview. Intel is valued at about $110bn (€94.4bn), meaning a 10% government stake would equate to roughly $11bn (€9.44bn) at current prices. Other major shareholders include Vanguard, BlackRock, and State Street. A 10% US government stake would almost certainly vault Washington ahead of Vanguard as Intel's largest single shareholder, unless structured as non-voting shares outside the normal count.

Trump admin in talks to take a 10% stake in Intel, US gov would be the biggest shareholder

TL;DR: The Trump Administration is negotiating to convert Intel's $10.9 billion CHIPS Act grant into a 10% equity stake, potentially making the US government Intel's largest shareholder. This move aims to strengthen domestic semiconductor manufacturing amid Intel's competitive challenges and efforts to advance its Intel Foundry Services and next-gen 14A process node. The Trump Administration is in talks with Intel to take a 10% stake in the company, by converting some (or all) of the CHIPS Act grant money from Intel into equity. Bloomberg is reporting from a White House official and other people familiar with the matter, which would see the US government become Intel's largest shareholder. Intel is set to receive $10.9 billion in CHIPS Act grants for both commercial and military production, and at Intel's current market value, a 10% stake in the company would be worth around $10.5 billion. According to Bloomberg's sources, the exact size of the stake in Intel, and whether the Trump administration decides to ink the deal, is "still in flux". White House spokesperson Kush Desai declined to comment on the specifics of the discussion, only saying that no deal is final until it's announced by the administration. The US Commerce Department oversees the CHIPS Act, declining to comment, with Intel also declining to comment. Bloomberg reports that the White House official also "floated the possibility" that the Trump administration could convert other CHIPS Act awards into equity stakes, but it wasn't clear whether this idea had "gained traction" deeper into the Trump administration, or whether officials even discussed the idea with any companies that would be affected by the move. An injection of funds won't just automatically, overnight, buzz Intel back into relevancy as it has multiple fires to put out before it can reclaim any huge victory over any of its competitors: AMD, Qualcomm, NVIDIA, Apple, TSMC, Samsung, and others. AMD has been like a wrecking ball into the desktop CPU business with Ryzen, with a vengeance into HEDT with Ryzen Threadripper, and with monster core counts in the server and HPC businesses with EPYC. Radeon is the only true competitor to GeForce, its Arc GPUs haven't made a big splash whatsoever, its AI GPU business is nothing but a tiny blip on NVIDIA's radar, and its semiconductor foundry business is nothing next to TSMC. All the cash in the world won't solve these issues overnight, nor will it bring back the tens of thousands of employees that Intel has ejected in the last 12-18 months. However, having one of the leaders in its industry not only designing but making and fabbing next-generation CPUs on American soil is something the US both wants and needs. President Trump has been quite firm about this, with processor competitor Apple announcing another $100 billion investment for a total of $600B on US investments, also announcing its American Manufacturing Program (AMP) to boost domestic supply chains and advanced manufacturing. And that's just surface level stuff... consumer CPUs and GPUs... but we're seeing decent steps in Intel rumors moving forward. One of the big deals with Intel right now is its Intel Foundry Services (IFS) division which in recent reports, had its future depending on securing customers for its next-gen Intel 14A process node, more on that in the link above. If the company can't secure enough customers for its 14A node, it would continue manufacturing chips on 18A and other variants through to 2030, according to recent filings. Intel CEO Lip-Bu Tan is working with customers to make sure its Intel 14A process is a success, where the CEO said that Intel 18A missed out on closer collaboration with external customers.

Trump thinks owning a piece of Intel would be a good deal for the US

SAN FRANCISCO -- President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the Trump administration's involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers. The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bargain," Lutnick told CNBC. "It's obvious that it's the right move to make."

Trump Thinks Owning a Piece of Intel Would Be a Good Deal for the US. Here's What to Know

SAN FRANCISCO (AP) -- President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the Trump administration's involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers. What's happening? The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. Why would Trump do this? In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Didn't Trump want Intel's CEO to quit? That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." Why would Intel do a deal? The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Would this deal be unusual? Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Would the government run Intel? U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. What government grants does Intel receive? Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bargain," Lutnick told CNBC. "It's obvious that it's the right move to make."

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 examines equity stake in chip makers for CHIPS Act cash grants - The Economic Times

As part of a plan to revive US manufacturing, US Commerce Secretary Howard Lutnic said that the US government wants an equity stake in Intel in exchange for cash grants approved by the administration of former President Joe Biden. Now Lutnick intends to expand that plan to other companies, according to sources.US Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel as well as other chip companies in exchange for grants under the CHIPS Act that was meant to spur factory-building around the country, two sources said. As part of a plan to revive US manufacturing - a key Trump agenda - Lutnick said earlier on Tuesday the US government wants an equity stake in Intel in exchange for cash grants approved by the administration of former President Joe Biden. Now Lutnick wants to expand that plan to other companies, according to a White House official and a person familiar with the situation. The Trump administration has recently made unusual deals with U.S. companies, including allowing AI chip giant Nvidia to sell its H20 chips to China in exchange for the U.S. government receiving 15% of those sales. The Pentagon is slated to become the largest shareholder in a small mining company to boost output of rare earth magnets. The government's intervention in corporate matters has worried critics who say President Donald Trump's actions create new categories of corporate risk and that a bad bet could mean a hit to taxpayer funds. Much of the funding under the CHIPS Act has not yet been dispersed for companies such as Micron, Taiwan Semiconductor Manufacturing Co, Samsung and Intel. TSMC and Intel declined comment. Micron, Samsung and the White House did not respond to requests for comment on whether Lutnick is considering more stakes. Taking lawmaker questions in Taipei on Wednesday and asked whether the U.S. government could take a stake in TSMC, Taiwan Economy Minister Kuo Jyh-huei said his ministry would consult with the company, which he pointed out was private and not a state-owned enterprise. "We will also discuss with the National Development Council, as it is a shareholder of TSMC. We will thoroughly understand the underlying meaning of the U.S. Commerce Secretary's remarks, but this will require some time for discussion and assessment," Kuo said. Taiwan's National Development Council referred questions to TSMC. The two sources told Reuters on Tuesday that Treasury Secretary Scott Bessent is also involved in the CHIPS Act discussions, but that Lutnick is driving the process. The Commerce Department oversees the $52.7 billion CHIPS Act money. Lutnick has been pushing the equity idea, the sources said, adding that Trump likes the idea. White House Press Secretary Karoline Leavitt confirmed earlier that Lutnick was working on a deal with Intel to take a 10% government stake. "The president wants to put America's needs first, both from a national security and economic perspective, and it's a creative idea that has never been done before," she told reporters. Speaking on CNBC, Lutnick said the U.S. wants a return on its "investment". "We'll get equity in return for that ... instead of just giving grants away," he said. President Donald Trump has previously said he wanted to kill the CHIPS Act program. Lutnick's comments suggested any stake would be non-voting, meaning it would not enable the U.S. government to tell the company how to run its business. His comments came a day after SoftBank Group agreed to invest $2 billion in Intel, which has struggled to compete after years of management blunders. "The Biden administration literally was giving Intel money for free and giving TSMC money for free, and all these companies just giving the money for free, and Donald Trump turned it into saying, 'Hey, we want equity for the money. If we're going to give you the money, we want a piece of the action for the American taxpayer'," Lutnick said.

Trump thinks owning piece of Intel would be good deal for US: Here's what to know - The Economic Times

President Trump is pursuing a 10% US government stake in Intel by converting Biden-era grants into equity. The move aims to boost domestic chip production, reduce reliance on foreign suppliers, and counter China in AI development. Facing losses and setbacks, Intel may accept the deal, echoing past government bailouts.President Donald Trump wants the US government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realised, the investment would deepen the Trump administration's involvement in the computer industry as the president ramps up the pressure for more US companies to manufacture products domestically instead of relying on overseas suppliers. What's happening? The Trump administration is in talks to secure a 10 per cent stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the US government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. Why would Trump do this? In his second term, Trump has been leveraging his power to reprogramme the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15 per cent commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the US, which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the US will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Didn't Trump want Intel's CEO to quit? That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the US in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." Why would Intel do a deal? The company isn't commenting about the possibility of the US government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly USD 19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Would this deal be unusual? Although rare, it's not unprecedented for the US government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Would the government run Intel? US Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favour with the president to increase their orders for the company's chips. What government grants does Intel receive? Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the programme. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives programme - money that Lutnick derided as a "giveaway" that would better serve US taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bargain," Lutnick told CNBC. "It's obvious that it's the right move to make."

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?