The Trump administration is reportedly in early discussions about acquiring a 10% equity stake in Intel, which would make the U.S. government one of the chipmaker’s largest shareholders.
According to Bloomberg, officials are considering converting $8 billion to $10.9 billion in funding from the Chips and Science Act into equity. The move is aimed at strengthening Intel’s struggling foundry business and boosting U.S. semiconductor production.
The talks come after recent tensions between President Trump and Intel CEO Lip-Bu Tan, whom Trump had previously criticized over alleged ties to China. However, the president later signaled support for Tan, calling him a “capable leader.”
Intel’s stock reacted sharply to the news, dropping about 3–4% on investor concerns over potential dilution and government ownership. While some see the move as a strong show of federal backing for domestic chipmaking, others worry it could blur the line between private industry and government control.
The discussions are still at an early stage, and no final decision has been made.
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