Potential Government Equity Stake in Intel: A Strategic Move?
The Trump administration is reportedly in talks to acquire an equity stake in the beleaguered chipmaker, Intel. This information, according to Bloomberg reports from August 14-15, 2025, suggests that the potential deal could provide much-needed funding for Intel’s planned $20 billion semiconductor manufacturing facility in Ohio, a project that has been plagued by repeated delays.
Following the initial report, Intel shares experienced a surge of 7% on Thursday. This unexpected turn of events brought the company’s year-to-date gains to 19%, a significant recovery after losing 60% of its value in 2024. The proposed government stake could potentially be financed through the US CHIPS Act funds, indicating a significant shift towards state capitalism in the semiconductor industry.
The discussions were initiated after a meeting between Intel CEO Lip-Bu Tan, President Trump, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick on August 11. This meeting was a follow-up to President Trump’s earlier call for Tan’s resignation over alleged ties to China. However, the president later described their meeting as “very interesting” and lauded Tan’s success as “an amazing story.”
As the only US company capable of manufacturing the most advanced chips on American soil, Intel holds a strategic importance for national security and aligns with Trump’s domestic manufacturing goals.
Source: https://www.cnbc.com/2025/08/14/intel-stock-climbs-trump-admin-stake.html