Trump Administration Mulls 10% Stake in Intel: Report

The Trump administration is reportedly in talks to take up a 10% stake in Intel (INTC) as it looks to boost domestic semiconductor production. 

Intel’s stock was down nearly 4% in midday trade, but retail sentiment on Stocktwits continued to trend in the ‘extremely bullish’ territory over the past day, accompanied by ‘extremely high’ levels of chatter. 

People familiar with the matter told Bloomberg that the federal government is considering a potential investment in Intel that would involve converting some or all of the company’s grants from the U.S. Chips and Science Act into equity. Intel has been slated to receive a combined $10.9 billion in Chips Act grants for commercial and military production.

The report noted that, at the current market value, a 10% stake would be worth about $10.5 billion. It added that the proposal remains under discussion, and no final decision has been made on whether the Trump administration will move ahead with the plan or the exact size of its stake.

One White House official also reportedly floated the idea of converting additional Chips Act awards into government equity stakes. However, Bloomberg said it remains unclear whether the concept has broader support within the administration or whether companies beyond Intel have been approached.

The development follows heightened scrutiny of Intel’s leadership. President Donald Trump met with CEO Lip-Bu Tan last week after calling on Tan to resign, saying the CEO is ‘highly conflicted’. That came after Senator Tom Cotton sent a letter to Intel Chairman Frank Yeary raising concerns over Tan’s investments in firms with reported links to the Chinese Communist Party.

The talks mark the latest instance of the government considering direct stakes in strategically important companies. Earlier this year, Trump’s administration struck a deal with MP Materials (MP) that made the Department of Defense the largest shareholder in the rare-earth producer.

According to the report, if the Trump administration does go through with its plans of taking a 10% stake in Intel, it could make the U.S. government the chipmaker’s largest shareholder. 

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