WASHINGTON, D.C. — The Trump administration is exploring a bold move to acquire a 10% stake in Intel Corp., potentially positioning the U.S. government as the chipmaker’s largest shareholder, according to a report by CNBC on August 19, 2025. The plan involves converting up to $10.9 billion in grants from the 2022 Chips and Science Act, originally awarded for Intel’s commercial and military chip production, into equity. With Intel’s market value at roughly $104 billion, the stake would be worth approximately $10.4 billion, per CNBC.
The discussions, still in early stages, aim to bolster Intel’s struggling operations, particularly its delayed Ohio factory project, which was once touted as the world’s largest chipmaking facility. “The Trump administration is discussing taking a 10% stake in Intel,” a White House official told CNBC, noting that the move could involve reallocating existing grants or combining them with other funding sources. Intel, which has received $2.2 billion of its $10.9 billion Chips Act allocation as of January, declined to comment on the talks.
Key aspects of the proposed deal include:
- Strategic Investment: Converting grants to equity to support Intel’s $100 billion U.S. expansion plans.
- Ohio Focus: Accelerating the delayed $20 billion Ohio factory, critical for domestic chip production.
- National Security: Strengthening U.S. semiconductor supply chains amid tensions with China.
The move follows a White House meeting between President Trump and Intel CEO Lip-Bu Tan, after Trump initially called for Tan’s resignation over alleged China ties. Intel’s stock fell 3.7% on Monday, trimming last week’s 23% surge fueled by early reports, per CNBC. Posts on X reflected mixed sentiment, with @AlvaApp warning of potential “political meddling” risks. If finalized, the deal could reshape U.S. industrial policy, echoing past government stakes in firms like General Motors during the 2008 crisis.
Source: CNBC
