The administration of United States President Donald Trump is in talks with Intel to have the US government potentially take a stake in the chipmaker.
Intel’s shares surged more than 7 percent in regular trading and then another 2.6 percent after the bell on Thursday, following Bloomberg News’ initial report of the potential deal, which cited people familiar with the plan.
It is unclear what size stake the federal government will take, but Bloomberg reports that the deal will help “shore up” a planned factory in Ohio that has been delayed.
The plan stems from a meeting this week between Trump and Intel CEO Lip-Bu Tan, the report said.
Tan also met Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent.
“The meeting was a very interesting one,” Trump said on Truth Social on Monday, adding that his cabinet members and Tan are going to spend time together and bring suggestions to him during the next week.
The meeting came after Trump publicly demanded the resignation of Tan over his past investments in Chinese tech companies, some linked to the Chinese military.
Intel declined to comment on the report but said it was deeply committed to supporting Trump’s efforts to strengthen US technology and manufacturing leadership.
“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” said White House spokesman Kush Desai.
The details of the stake and price are still being discussed, according to the report.
Struggling business
Any agreement and potential cash infusion will help the years-long efforts to turn around the company’s fortunes. Once the undisputed leader in chip manufacturing, Intel has lost its position in recent years.
The chipmaker’s stock market value has plummeted to $104bn from $288bn in 2020.
Intel’s profit margins – once the envy of the industry – are also at about half their historical highs.
Tan has been tasked to undo years of missteps that left Intel struggling to make inroads in the booming AI chip industry dominated by Nvidia, while investment-heavy contract manufacturing ambitions led to heavy losses.
Any agreement would likely help Intel build out its planned chip complex in Ohio, Bloomberg reported.
Intel’s planned $28bn chip fabrication plants in Ohio have been delayed, with the first unit now slated for completion in 2030 and operations to begin between 2030 and 2031, pushing the timeline back by at least five years.
Taking a stake in Intel would mark the latest move by Trump, a Republican, to deepen the government’s involvement in the US chip industry, seen as a vital security interest to the country.
Earlier this week, Trump made a deal with Nvidia to pay the US government a cut of its sales in exchange for resuming exports of banned AI chips to China.
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