Lip-Bu Tan, chief executive officer of Intel Corp., departs following a meeting at the White House in Washington, DC, US, on Monday, Aug. 11, 2025. Alex Wroblewski | Bloomberg | Getty Images
The Trump administration is discussing taking a 10% stake in Intel , according to a Bloomberg report on Tuesday, in a deal that could see the U.S. government become the chipmaker's largest stakeholder. As part of a potential deal, the government is also considering converting some or all of Intel's grants from the 2022 U.S. CHIPS and Science Act into equity in the company, the report said, citing a White House official and other people familiar with the matter. At the embattled chipmaker's current market value, a 10% stake would be worth roughly $10.4 billion. Meanwhile, Intel has been awarded about $10.9 billion in CHIPS Act grants, including $7.9 billion to support its domestic investment plans and $3 billion to further its semiconductor manufacturing for national security.
Stock Chart Icon Stock chart icon Intel investors had initially welcomed news of the government investment, which resulted in a share rally of nearly 9% on Aug. 14.
The report noted, however, that it remains unclear if the idea has gained traction broadly within the administration or whether officials have broached the possibility with affected companies. It added that the exact size of the stake remains in flux, and it remains unclear whether the White House will actually proceed with the plan. Intel and the White House did not immediately respond to CNBC's queries regarding the report. Intel, once a dominant force in the U.S. chip industry, has fallen behind global competitors in advanced chip manufacturing. Reviving the former U.S. chip champion has become a national priority in Washington, with reports about a potential government stake in the company first circulating last week. The company has been the largest recipient of the 2022 CHIPS Act, passed with bipartisan support under the Biden administration, as part of efforts by Washington to revitalize U.S. leadership in semiconductor manufacturing. The bill allocated $39 billion in grants for American semiconductor projects, with funding committed to many of the world's chipmakers such as TSMC and Samsung, as well as American chip companies such as Nvidia, Micron and GlobalFoundries. U.S. President Donald Trump, though supporting the general goals of the CHIPS Act, has been a vocal critic of the bill and even called for its repeal earlier this year. While republican lawmakers in Washington have been reluctant to act on that call, U.S. Commerce Secretary Howard Lutnick said in June that the administration was renegotiating some of the bill's grants. If Intel's CHIPS Act funds were to be converted into a potential government stake in the company, it could decrease the total amount of capital infused into the company as part of any deal by Washington. However, it would serve as the latest example of the Trump administration's interest in building government-backed national champions in strategic industries.
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