U.S. Government Contemplates Acquiring 10% Equity Stake in Intel Corp
The Trump administration is said to be in talks to acquire a 10% equity stake in Intel Corp., a move that would make the U.S. government the chipmaker’s largest shareholder. The proposal involves converting $10.9 billion in CHIPS Act grants into government equity, valued at approximately $10.4 billion at current market prices.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick confirmed the government’s interest this week. However, they provided different explanations for the strategy.
This move is part of a broader initiative by the Trump administration to strengthen U.S. semiconductor manufacturing and reduce dependence on Taiwan-based chip production. Intel CEO Lip-Bu Tan met with President Trump at the White House last week, following a call from Trump for his resignation over alleged ties to China.
The potential government stake would help fund Intel’s planned $20 billion semiconductor plant in Ohio, which has faced repeated delays. This represents an unprecedented shift toward state capitalism in the U.S. tech sector, following similar government equity moves in other strategic industries.
Source: Bloomberg