The Trump administration is considering taking a 10% stake in Intel, Bloomberg reported Monday, in a move that could reshape the U.S. semiconductor landscape.
The potential deal would involve converting some of the company’s grants under the Chips and Science Act into equity, according to people familiar with the matter.Shares of Intel dropped 3.8% after the report.
President Donald Trump met with Intel CEO Lip-Bu Tan earlier this month to discuss the plan, which would mark an unprecedented government tie-up with a private chipmaker.The administration has already pushed similar arrangements in semiconductors and critical minerals, including deals involving Nvidia and MP Materials.
Intel, struggling to revive its foundry business and lagging product roadmap, could gain valuable financial breathing room with federal backing.The company needs to overcome multiple challenges to acquire customers for its new manufacturing facilities according to analysts.
Tan, who took over the top job six months ago, has been tasked with stabilizing the company’s market position amid fierce competition from Taiwan’s TSMC and South Korea’s Samsung.A government equity stake would signal a new level of intervention in Washington’s push to secure U.S. semiconductor dominance.
