Lip-Bu Tan, chief government 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 Pictures
The Trump administration is discussing taking a ten% stake in Intel, in response to a Bloomberg report on Tuesday, in a deal that might see the U.S. authorities grow to be the chipmaker’s largest stakeholder.
As a part of a possible deal, the federal government can also 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 stated, citing a White Home official and different individuals conversant in the matter.
On the embattled chipmaker’s present market worth, a ten% stake could be price roughly $10.4 billion. In the meantime, Intel has been awarded about $10.9 billion in CHIPS Act grants, together with $7.9 billion to assist its home funding plans and $3 billion to additional its semiconductor manufacturing for nationwide safety.
Intel buyers 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 concept has gained traction broadly throughout the administration or whether or not officers have broached the likelihood with affected corporations.
It added that the precise dimension 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 relating to the report.
Intel, as soon as a dominant power within the U.S. chip business, has fallen behind international opponents in superior chip manufacturing. Reviving the previous U.S. chip champion has grow to be a nationwide precedence in Washington, with reviews a couple of 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 assist 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 tasks, with funding dedicated to most of the world’s chipmakers corresponding to TSMC and Samsung, in addition to American chip corporations corresponding to Nvidia, Micron and GlobalFoundries.
U.S. President Donald Trump, although supporting the overall objectives 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 stated in June that the administration was renegotiating a few of the invoice’s grants.
If Intel’s CHIPS 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 will function the most recent 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 important for the struggling chipmaker and for the sake of U.S. nationwide safety. Others contend that Intel’s issues are deeper than funding, and that it is unclear if the federal government can steer it in the precise path.
Analysts have additionally famous that Trump might be able to use the specter of tariffs and regulation to sway corporations to purchase Intel chips or present oblique help.
On Tuesday, SoftBank introduced a $2 billion funding in Intel, which, in response to LSEG, would make it the fifth-largest shareholder. Masayoshi Son, Chairman & CEO of SoftBank Group, stated: “This strategic funding displays our perception that superior semiconductor manufacturing and provide will additional increase in america, with Intel taking part in a vital function.”
Intel buyers had initially welcomed information of a possible authorities 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 the 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 as a consequence of his previous ties to China.
After the assembly, Trump had modified his tune on the Intel chief, saying he had “an incredible 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.
