Trump Admin Eyes 10% Intel Stake via Chip Act Grants
The Trump administration is reportedly engaged in advanced discussions to acquire a significant equity stake in Intel Corp., a move that could position the U.S. government as the struggling chipmaker’s largest single shareholder. This potential investment underscores an aggressive approach to industrial policy, particularly in sectors deemed vital for national security and economic competitiveness.
Sources familiar with the confidential negotiations indicate that the proposed investment would involve converting some, or potentially all, of the grants allocated to Intel under the bipartisan U.S. CHIPS and Science Act into equity. Intel has been slated to receive a combined $10.9 billion from the CHIPS Act, a landmark legislative initiative designed to bolster domestic semiconductor manufacturing and reduce reliance on foreign supply chains. These substantial funds were designated for both commercial and military production efforts, highlighting the strategic importance of Intel’s operations to the nation’s technological infrastructure.
The discussions, which are being kept confidential, were confirmed by a White House official and other individuals close to the matter who requested anonymity due to the sensitive nature of the information. Should the deal materialize, a 10% stake would represent an unprecedented level of direct government ownership in a major, publicly traded technology firm, moving beyond traditional subsidies and tax incentives to a more direct form of intervention.
Such a move would signal a profound shift in the relationship between the federal government and critical private industries. While the CHIPS Act already represents a substantial commitment to reshoring semiconductor production, converting grants into equity introduces a new dimension of influence and oversight. This could potentially afford the government a voice in Intel’s corporate governance, strategic direction, and even its competitive posture in the global market.
The implications for Intel, a company that has faced significant market challenges and intense competition in recent years, are substantial. A government stake could provide a critical infusion of capital and stability, but it also raises questions about potential governmental influence on business decisions and the perception of the company in international markets. For the broader technology sector, this precedent could redefine how federal support for critical technologies evolves, potentially leading to similar equity-based partnerships in other strategically important industries. The ongoing discussions represent a pivotal moment in the intersection of national security, industrial policy, and the future of American technology leadership.