In a dramatic escalation of US industrial policy, multiple reports from Bloomberg News and other sources confirm that the Trump administration is actively considering taking a direct stake of up to 10% in American chipmaking giant Intel. The move, which may see some or all of Intel’s existing $10.9 billion CHIPS Act grants converted to equity, signals both a rescue operation for the struggling firm and an intensification of government intervention in strategically vital technology sectors. Discussions reportedly remain at an early stage as the White House explores new policy territory to ensure Intel’s survival and the vibrancy of domestic semiconductor manufacturing.
Key Developments
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The administration is in talks with Intel to acquire up to a 10% stake, aiming to support the company’s ongoing financial and competitive struggles.
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Proposed funding would likely leverage the CHIPS Act (2022), designed to boost US semiconductor manufacturing, directing existing grants into government equity in Intel.
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The initiative is part of a wider effort to shore up Intel’s foundry business and accelerate construction of its much-delayed Ohio megafactory, now targeted for completion by 2030 after severe funding setbacks.
Possible Structure of the Investment
Options being considered range from converting Intel’s current government grants into equity, to applying fresh allocations from the CHIPS Act, or combining new and existing forms of support.
Sources close to the deliberations caution that alternatives remain on the table, reflecting the complexity and potential consequences of the deal.
Implications for the Semiconductor Industry
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US government support for Intel could reshape global chip market dynamics, especially for overseas rivals such as South Korea’s Samsung and Taiwan’s TSMC. There is growing concern in Asian markets that such direct intervention could erode their US market share and influence procurement policies at major US tech firms.
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Intel, meanwhile, may be positioned to market itself more aggressively to US tech multinationals like Apple, Nvidia, Qualcomm, and Broadcom, buoyed by federal backing and incentives to "buy American."
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Industry observers underline that, despite the cash injection, Intel will need to demonstrate clear technological competitiveness versus global leaders TSMC and Samsung, who currently dominate the foundry sector.
National Security and Strategic Priorities
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White House officials and analysts frame the initiative as a critical national security measure, intended to lessen US reliance on foreign chipmakers -- a concern amplified by geopolitical tensions and trade disputes.
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Supporters point to the need for a domestic, state-backed champion with the technological and production scale to close the gap with global leaders and meet government and industry demands for secure supply chains.
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Critics, including some Wall Street analysts, caution that too much government intervention could inadvertently distort market competition and limit overall innovation.
Intel’s Ongoing Struggles
Since early 2022, Intel’s foundry division has posted losses every quarter, with accumulated losses reaching $19.6 billion by Q2 2025. The Ohio plant, initially planned for completion in 2025, has seen its timeline extended by five years due to these financial challenges.
The equity stake, if realized, may provide essential support for Intel to revive its manufacturing ambitions and regain footing in global chip markets.
Market Reaction
News of the possible US stake in Intel sent shares climbing, with Intel stock jumping 23% on the whispers of government backing. Analysts are watching for further details, which could reshape both investment sentiment and global chip supply strategies.
Conclusion
As the Trump administration weighs its next move, the prospect of the US government acquiring a sizable share in Intel is sending ripples far beyond Washington. While the ultimate outcome remains uncertain, today’s news underscores the rising willingness of the US to play a direct role in the fate of strategic industrial champions.
Source: Bloomberg News
