Lip-Bu Tan, CEO of Intel, departs the White Home in Washington, DC, U.S., on Monday, Aug. 11, 2025.
Alex Wroblewski | Bloomberg | Getty Pictures
The Trump administration is discussing taking a ten% stake in Intel, in keeping with 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 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 folks accustomed to the matter.
On the embattled chipmaker’s present market worth, a ten% stake can 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 for industrial manufacturing and $3 billion for nationwide safety initiatives.
Intel buyers had initially welcomed information of the federal government funding, which resulted in a share rally of practically 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 chance 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 drive within the U.S. chip trade, has fallen behind world opponents in superior chip manufacturing. Reviving the previous U.S. chip champion has grow to be a nationwide precedence in Washington, with experiences a few potential authorities stake within the firm first circulating final week.
The corporate has been the biggest 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 manufacturing initiatives, with funding dedicated to lots of the world’s chipmakers akin to TSMC and Samsung, in addition to American chip corporations akin to Nvidia, Micron and GlobalFoundries.
U.S. President Donald Trump, although supporting the final objectives of the Chips Act, has been a vocal critic of the invoice and even referred to as for its repeal earlier this 12 months. 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 had been to be transformed into a possible authorities stake within the firm, it may lower the entire quantity of capital infused into the corporate as a part of any deal by Washington.
Nevertheless, 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 achieve a bonus within the synthetic intelligence increase and has but to seize a major 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 will help with that.
Analysts have additionally famous that Trump might be able to sway corporations to purchase Intel chips or help not directly, by tariffs and regulation.
On Tuesday, it was introduced that SoftBank was investing $2 billion in Intel. Based on LSEG, the funding is price 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 increase in the US, with Intel taking part in a crucial position.”
Intel buyers had initially welcomed information of the federal government funding, which resulted in a share rally of practically 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 referred to as for his ousting resulting from 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.