Intel’s CEO Lip-Bow Tan, Monday, August 20, 2025 departs the White House in Washington, DC, US.
Alex Volvski | Bloomberg | Getty images
Trump is discussing taking 10% stake in administration IntelAccording to a Bloomberg report on Tuesday, in a deal, which could become the biggest stakeholder of the US government.
As part of a potential deal, the government is also considering converting the grants of something or all Intel from the 2022 US Chips and Science Act into equity in the company, stating that the White House officer and others are familiar with the matter.
On the current market price of the chipmaker, the 10% stake will be around $ 10.4 billion. Meanwhile, Intel is awarded about $ 10.9 billion in the Chips Act grant, including $ 7.9 billion for commercial manufacturing and $ 3 billion for national security projects.
Intel investors initially welcomed the news of government investment, resulting in a share rally of about 9% on August 14.
However, the report states that it is not clear whether the idea has obtained roughly within the administration or whether the authorities have provoked the possibility with the affected companies.
It states that the exact shape of the stake remains in the flow, and it is not clear that the White House will actually proceed with the plan. Intel and White House did not immediately respond to CNBC questions about the report.
Intel, once a major force in the US chip industry, has fallen behind global competitors in advanced chip construction. Revival of former US Chip Champion has become a national priority in Washington, with a possible government share of a possible government share in the company last week.
The company has been the largest recipient of the 2022 Chips Act, which has been passed with bilateral support under the Biden administration, as part of the attempts by Washington to revive the American leadership in semiconductor manufacturing.
Bill allocated $ 39 billion in the grant for American semiconductor manufacturing projects, with many chipmakers in the world like TSMC and Samsung as well as funds for American chip companies such as NVIDIA, Micron and Globalfoundries.
US President Donald Trump, although supporting the general goals of the Chips Act, has been an outspoken critic of the bill and even said for its dismissal earlier this year. While Republican MPs in Washington have been reluctant to take action on the call, US Commerce Secretary Howard Lutnik said in June that the administration was re -organizing some grants of the bill.
If Intel’s Chip Act fund is converted into a possible government stake in the company, it can reduce the total amount of capital infected in the company as part of any deal by Washington.
However, it will serve as the latest example of the Trump administration’s interest in the creation of a government -backed national champion in strategic industries.
Intel has struggled to take an advantage in the Artificial Intelligence Boom and despite spending heavily on it to catch an important customer for his manufacturing business.
Some analysts have argued that government intervention is necessary for struggling chipmakers and US national security. Other people say that Intel’s problems are deeper than funding, and it is not clear how the government can help with it.
Analysts have also mentioned that Trump companies may be able to buy Intel chips or help indirectly through tariffs and regulation.
On Tuesday, it was announced that SoftBank was investing $ 2 billion at Intel. According to LSEG, investment is a value of about 2% Intel, making Softbank the fifth largest shareholder. SoftBank Group President and CEO, Masayoshi son said: “This strategic investment shows our confidence that advanced semiconductor manufacturing and supply will further expand in the United States, in which Intel is playing an important role.”
Intel investors initially welcomed the news of government investment, resulting in a share rally of about 9% on August 14. Intel’s shares fell over 3% on Bloomberg’s report on Monday, but after the news of SoftBank investment, the trading platform Robinhood was rebounded by more than 5% in the night trading.
Intel appointed in March 2025, Lip-Bow Tan, CEO of Intel, met at the White House with Trump last week, when the US President called for China to exit due to his previous relationship.
After the meeting, Trump had changed his tune to the Intel chief, he said that he has “a wonderful story.” It is not clear whether a possible government share in the company at that time was discussed.
Read the full Bloomberg story here.
