The Trump administration is reportedly in discussions to acquire a 10% equity stake in Intel Corporation, aiming to bolster the struggling U.S. chipmaker and enhance domestic semiconductor manufacturing.
This potential investment would involve converting a portion of Intel’s $10.9 billion in federal grants from the Chips and Science Act into equity, positioning the U.S. government as one of Intel’s largest shareholders.
Intel has faced significant challenges, including delays in its Ohio semiconductor facility and a declining stock price, which has fallen over 50% amid rising costs and an outdated product line up.
The proposed stake would be valued at approximately $10.5 billion, aligning with the amount Intel is set to receive under the Chips Act.
Commerce Secretary Howard Lutnick has advocated for the equity stake, suggesting it would be a more effective use of taxpayer money while securing returns for the government.
The move reflects a broader trend of increased government involvement in strategic industries, including previous investments in companies like Nvidia and MP Materials.
Intel declined to comment on the report, and the White House has not responded to requests for comment.
As discussions continue, the outcome remains uncertain, with potential implications for U.S. industrial policy and the future of semiconductor manufacturing.
