Lip-Bu Tan, CEO of Intel, departs the White House successful Washington, DC, U.S., connected Monday, Aug. 11, 2025.
Alex Wroblewski | Bloomberg | Getty Images
The Trump medication is discussing taking a 10% involvement successful Intel, according to a Bloomberg study connected Tuesday, successful a woody that could spot the U.S. authorities go the chipmaker's largest stakeholder.
As portion of a imaginable deal, the authorities is besides considering converting immoderate oregon each of Intel's grants from the 2022 U.S. CHIPS and Science Act into equity successful the company, the report said, citing a White House authoritative and different radical acquainted with the matter.
At the embattled chipmaker's existent marketplace value, a 10% involvement would beryllium worthy astir $10.4 billion. Meanwhile, Intel has been awarded astir $10.9 cardinal successful Chips Act grants, including $7.9 billion for commercialized manufacturing and $3 billion for nationalist information projects.
Intel investors had initially welcomed quality of the authorities investment, which resulted successful a share rally of astir 9% connected Aug. 14.
The study noted, however, that it remains unclear if the thought has gained traction broadly wrong the medication oregon whether officials person broached the anticipation with affected companies.
It added that the nonstop size of the involvement remains successful flux, and it remains unclear whether the White House volition really proceed with the plan. Intel and the White House did not instantly respond to CNBC's queries regarding the report.
Intel, erstwhile a ascendant unit successful the U.S. spot industry, has fallen down planetary competitors successful precocious spot manufacturing. Reviving the erstwhile U.S. spot champion has go a nationalist precedence successful Washington, with reports astir a imaginable authorities involvement successful the institution archetypal circulating past week.
The institution has been the largest recipient of the 2022 Chips Act, passed with bipartisan enactment nether the Biden administration, arsenic portion of efforts by Washington to revitalize U.S. enactment successful semiconductor manufacturing.
The measure allocated $39 cardinal successful grants for American semiconductor manufacturing projects, with backing committed to galore of the world's chipmakers specified arsenic TSMC and Samsung, arsenic good arsenic American spot companies specified arsenic Nvidia, Micron and GlobalFoundries.
U.S. President Donald Trump, though supporting the wide goals of the Chips Act, has been a vocal professional of the measure and adjacent called for its repeal earlier this year. While enactment lawmakers successful Washington person been reluctant to enactment connected that call, U.S. Commerce Secretary Howard Lutnick said successful June that the medication was renegotiating immoderate of the bill's grants.
If Intel's Chip Act funds were to beryllium converted into a imaginable authorities involvement successful the company, it could alteration the full magnitude of superior infused into the institution arsenic portion of immoderate woody by Washington.
However, it would service arsenic the latest illustration of the Trump administration's involvement successful gathering government-backed nationalist champions successful strategical industries.
Intel has struggled to summation an vantage successful the artificial quality roar and has yet to seizure a important lawsuit for its manufacturing concern contempt spending heavy connected it.
Some analysts person argued that authorities involution is indispensable for the struggling chipmaker and for the involvement of U.S. nationalist security. Others contend that Intel's problems are deeper than funding, and it is not wide however the authorities tin assistance with that.
Analysts person besides noted that Trump whitethorn beryllium capable to sway companies to bargain Intel chips oregon assistance indirectly, done tariffs and regulation.
On Tuesday, it was announced that SoftBank was investing $2 cardinal successful Intel. According to LSEG, the concern is worthy astir 2% of Intel, making SoftBank the fifth-biggest shareholder. Masayoshi Son, Chairman & CEO of SoftBank Group, said: "This strategical concern reflects our content that precocious semiconductor manufacturing and proviso volition further grow successful the United States, with Intel playing a captious role."
Intel investors had initially welcomed quality of the authorities investment, which resulted successful a share rally of astir 9% connected Aug. 14. Shares of Intel fell implicit 3% connected Monday connected the Bloomberg report, but rebounded by much than 5% successful overnight trading connected the trading level Robinhood pursuing quality of a Softbank investment.
Intel CEO Lip-Bu Tan, who was appointed successful March 2025, met with Trump astatine the White House past week, aft the U.S. president had called for his ousting owed to his past ties to China.
After the meeting, Trump had changed his tune connected the Intel chief, saying helium had "an astonishing story." It's unclear if a imaginable authorities involvement successful the institution had been discussed astatine the time.
Read the afloat Bloomberg communicative here.
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