Lip-Bu Tan, chief govt officer of Intel Corp., departs following a gathering on the White Home in Washington, DC, US, on Monday, Aug. 11, 2025.
Alex Wroblewski | Bloomberg | Getty Photographs
Intel shares rose about 6% on Friday after Bloomberg reported that the Trump administration is poised to announce that the U.S. authorities will take an fairness stake within the struggling chipmaker.
Following the report, President Donald Trump stated the federal government ought to get about 10% of the corporate, which has a market cap of simply over $100 billion.
“They’ve agreed to do it and I believe it is an amazing deal for them,” Trump instructed reporters Friday on the White Home
White Home official instructed CNBC that there can be “ongoing discussions” with Intel, including that nothing has been determined but and that Intel CEO Lip-Bu Tan hasn’t explicitly agreed to a deal. President Trump and Tan can be assembly later this afternoon.
A consultant for Intel declined to remark.
The transfer would mark the newest instance of a definite shift in U.S. industrial coverage, with the federal government taking an energetic position within the company America. Commerce Secretary Howard Lutnick instructed CNBC this week that the U.S. authorities was looking for an fairness stake in Intel in change for CHIPS Act funds.
“We should always get an fairness stake for our cash,” Lutnick stated on CNBC’s “Squawk on the Avenue.” “So we’ll ship the cash, which was already dedicated below the Biden administration. We’ll get fairness in return for it.”
Lutnick stated that the federal government’s stake can be “nonvoting.”
Earlier this week, Intel introduced one other main backer, when SoftBank stated it might make a $2 billion funding within the chipmaker, equal to about 2% of the corporate.
Intel is the one American firm able to making probably the most superior chips on U.S. shores, though its expertise is seen as lagging Taiwan Semiconductor Manufacturing Firm, which makes chips for firms together with Apple, Nvidia, Qualcomm, AMD, and even Intel.
Intel has been spending billions of {dollars} to construct a sequence of chip factories in Ohio, an space the corporate beforehand referred to as the “Silicon Heartland,” the place Intel would be capable of produce probably the most superior chips, together with for AI.
However in July, Tan stated in a memo to staff that there can be “no extra clean checks,” and that it was slowing down the development of its Ohio manufacturing facility complicated, relying on market situations. Intel’s Ohio manufacturing facility is now scheduled to begin operations in 2030.
Intel stated final fall that it had finalized an almost $8 billion grant below the CHIPS and Science Act to fund its factory-building plans. The CHIPS Act was handed in 2022, below the Biden administration.
— CNBC’s David Sucherman contributed to this report.
WATCH: President Trump says Intel ought to switch 10% of firm to authorities
