The Trump administration is reportedly considering taking a 10% equity stake in Intel Corp., a move that could make the U.S. government one of the largest shareholders in the struggling chipmaker.
According to a White House official and multiple sources familiar with the matter, discussions are ongoing, but no final decision has been made.
The plan would involve converting a portion of Intel’s $10.9 billion Chips and Science Act grants—earmarked for both commercial and military chip production—into equity holdings. At Intel’s current market valuation, a 10% stake translates to approximately $10.5 billion, nearly equal to the total grant amount.
The potential investment highlights Washington’s growing efforts to strengthen domestic semiconductor manufacturing, reduce dependency on Asian supply chains, and ensure U.S. leadership in critical technologies.
White House spokesperson Kush Desai declined to confirm details, stating:
“No deal is official until it’s announced by the administration.”
Similarly, the Commerce Department, which manages the Chips Act, declined to comment on the specifics.
Intel has been grappling with stagnant revenues, operating losses, and a loss of technological leadership to rivals like Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics.
Intel’s new CEO, Lip-Bu Tan, has focused on cost-cutting and workforce reductions to stabilize operations.
Despite early optimism, Intel’s stock slipped 3.7% on Monday after Bloomberg revealed the equity stake discussions, even though shares had previously rallied for the biggest one-week gain since February.
SoftBank Group Corp. recently announced a $2 billion investment in Intel shares, signaling international confidence in the chipmaker.
Intel was allocated $10.9 billion in Chips Act grants.
The funds were intended to be disbursed gradually as the company achieved project milestones.
As of January, Intel had already received $2.2 billion in disbursements.
The government is now weighing whether to convert these grants into equity stakes, potentially accelerating Intel’s access to funds while allowing Washington to gain shareholder influence.
It remains unclear if the $2.2 billion already disbursed would count toward the equity arrangement or if additional disbursements under Trump would be included.
Intel’s decline has been a concern for U.S. officials for years. Unlike TSMC and Samsung, which dominate global semiconductor production, Intel has lagged in producing cutting-edge chips.
Both Trump and Biden administrations have prioritized revitalizing U.S. chipmaking capacity, especially given the sector’s strategic importance to AI, defense, and advanced technology.
Biden officials previously explored a merger between Intel and GlobalFoundries.
Trump’s team even held preliminary talks with TSMC about managing Intel’s plants, though the Taiwanese giant later pulled back.
Other floated options included investment from the United Arab Emirates, though no progress was reported.
If approved, the Intel deal would align with Washington’s increasing involvement in strategic industries:
The Trump administration recently secured a 15% share of certain semiconductor sales to China.
It also took a golden share in U.S. Steel Corp. during its acquisition by a Japanese company.
Last month, the Pentagon announced a $400 million equity stake in MP Materials Corp., making it the rare-earth producer’s largest shareholder with a 15% stake.
CEO Lip-Bu Tan recently met with President Trump at the White House, laying the groundwork for the Intel discussions. While Trump had previously criticized Tan’s ties to China and even suggested his ouster, he later praised him after their meeting, calling Tan’s leadership journey “an amazing story.”
Sources suggest Tan is expected to remain in his role despite earlier criticisms.
The U.S. government may acquire a 10% stake in Intel worth ~$10.5B by converting Chips Act grants into equity.
Intel is struggling financially and technologically, but SoftBank’s $2B investment and U.S. backing could provide momentum.
The move fits into Washington’s broader strategy of securing critical supply chains in semiconductors and other strategic resources.
No official deal has been finalized yet, and details remain subject to negotiation.