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Lip-Bu Tan, CEO of Intel, departs the White Home in Washington, DC, U.S., on Monday, Aug. 11, 2025.
Alex Wroblewski | Bloomberg | Getty Photographs
The Trump administration is discussing taking a ten% stake in Intel, in accordance with a Bloomberg report on Tuesday, in a deal that would see the U.S. authorities turn out to be the chipmaker’s largest stakeholder.
As a part of a possible deal, the federal government can be contemplating changing some or all of Intel’s grants from the 2022 U.S. CHIPS and Science Act into fairness within the firm, the report mentioned, citing a White Home official and different individuals conversant in the matter.
On the embattled chipmaker’s present market worth, a ten% stake can be value roughly $10.4 billion. In the meantime, Intel has been awarded about $10.9 billion in Chips Act grants, together with $7.9 billion for industrial manufacturing and $3 billion for nationwide safety tasks.
Intel traders had initially welcomed information of the federal government funding, which resulted in a share rally of almost 9% on Aug. 14.
The report famous, nonetheless, that it stays unclear if the thought has gained traction broadly inside the administration or whether or not officers have broached the likelihood with affected corporations.
It added that the precise measurement of the stake stays in flux, and it stays unclear whether or not the White Home will truly proceed with the plan. Intel and the White Home didn’t instantly reply to CNBC’s queries concerning the report.
Intel, as soon as a dominant power within the U.S. chip business, has fallen behind world rivals in superior chip manufacturing. Reviving the previous U.S. chip champion has turn out to be a nationwide precedence in Washington, with studies a few potential authorities stake within the firm first circulating final week.
The corporate has been the most important recipient of the 2022 Chips Act, handed with bipartisan help below the Biden administration, as a part of efforts by Washington to revitalize U.S. management in semiconductor manufacturing.
The invoice allotted $39 billion in grants for American semiconductor manufacturing tasks, with funding dedicated to most of the world’s chipmakers equivalent to TSMC and Samsung, in addition to American chip corporations equivalent to Nvidia, Micron and GlobalFoundries.
U.S. President Donald Trump, although supporting the final targets of the Chips Act, has been a vocal critic of the invoice and even known as for its repeal earlier this yr. Whereas republican lawmakers in Washington have been reluctant to behave on that decision, U.S. Commerce Secretary Howard Lutnick mentioned in June that the administration was renegotiating a number of the invoice’s grants.
If Intel’s Chip Act funds have been to be transformed into a possible authorities stake within the firm, it might lower the whole quantity of capital infused into the corporate as a part of any deal by Washington.
Nonetheless, it might function the newest instance of the Trump administration’s curiosity in constructing government-backed nationwide champions in strategic industries.
Intel has struggled to realize a bonus within the synthetic intelligence increase and has but to seize a big buyer for its manufacturing enterprise regardless of spending closely on it.
Some analysts have argued that authorities intervention is crucial for the struggling chipmaker and for the sake of U.S. nationwide safety. Others contend that Intel’s issues are deeper than funding, and it isn’t clear how the federal government may also help with that.
Analysts have additionally famous that Trump could possibly sway corporations to purchase Intel chips or help not directly, via tariffs and regulation.
On Tuesday, it was introduced that SoftBank was investing $2 billion in Intel. In keeping with LSEG, the funding is value about 2% of Intel, making SoftBank the fifth-biggest shareholder. Masayoshi Son, Chairman & CEO of SoftBank Group, mentioned: “This strategic funding displays our perception that superior semiconductor manufacturing and provide will additional develop in america, with Intel enjoying a essential position.”
Intel traders had initially welcomed information of the federal government funding, which resulted in a share rally of almost 9% on Aug. 14. Shares of Intel fell over 3% on Monday on the Bloomberg report, however rebounded by greater than 5% in in a single day buying and selling on the buying and selling platform Robinhood following information of a Softbank funding.
Intel CEO Lip-Bu Tan, who was appointed in March 2025, met with Trump on the White Home final week, after the U.S. president had known as for his ousting because of his previous ties to China.
After the assembly, Trump had modified his tune on the Intel chief, saying he had “a tremendous story.” It is unclear if a possible authorities stake within the firm had been mentioned on the time.
Learn the total Bloomberg story right here.
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