Trump administration in talks over $10 billion investment in Intel
At 10%, the US government could become the chipmaker’s largest shareholder; discussions come as Intel battles losses and SoftBank steps in with $2 billion investment.
ADVERTISEMENT
The White House reportedly is in talks to take a stake of about 10% in Intel Corp., a move that could make the US government the company’s largest shareholder.
As reported by Bloomberg, officials from Trump administration are exploring a plan to convert some or all of Intel’s $10.9 billion in Chips and Science Act grants into equity. That figure roughly matches the value of a 10% stake at Intel’s current market capitalization of about $105 billion. The size of the holding, and whether the White House will move ahead, is still under discussion, the report said.
It is being reported that administration may consider converting other Chips Act awards into equity stakes, though it remains unclear whether that idea has gained traction or been formally raised with affected companies.
The discussions come as Intel also secured backing from SoftBank Group Corp., which announced plans on August 18 to buy $2 billion worth of Intel shares.
The move signals confidence in the US semiconductor industry from the Japanese tech giant, which is deepening its American investments.
Despite the interest, Intel faces an uphill battle. The company is grappling with stagnant sales, persistent losses, and eroding technological leadership. New CEO Lip-Bu Tan has focused on aggressive cost-cutting and job reductions in an effort to stabilize operations.
Read more: Ex-Intel engineer fined $34,472 for stealing confidential documents before joining Microsoft
A government stake could provide Intel with a major financial and strategic boost.
Last week, US President Donald J. Trump welcomed Intel’s chief executive, Lip-Bu Tan, to the White House for a meeting on technology policy, in a striking reversal from his recent calls for his resignation. Joined by Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, Trump praised Tan’s “amazing” rise and said his cabinet would work with the Intel leader to develop recommendations in the coming week. Intel later described the talks as candid and constructive, focusing on measures to strengthen American leadership in technology and manufacturing.
