The Trump administration is considering taking a 10% equity stake in Intel, a move that could see the U.S. government emerge as the chipmaker’s single largest shareholder.
The talks, first reported by Bloomberg on Tuesday, highlight Washington’s escalating efforts to revive the American semiconductor sector and shore up a company once regarded as the cornerstone of U.S. chip dominance.
According to the report, officials are weighing a plan that would involve converting some or all of Intel’s grants from the 2022 U.S. CHIPS and Science Act into equity. Intel has been the largest recipient of the law’s funding, with about $10.9 billion awarded so far — including $7.9 billion earmarked for commercial manufacturing and another $3 billion for national security projects. At Intel’s current market valuation, a 10% government stake would be worth roughly $10.4 billion.
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It remains unclear how far the idea has progressed within the administration. The size of the potential stake is still in flux, and officials have not confirmed whether direct conversations have taken place with Intel executives.
The possibility of Washington taking a direct stake underscores the urgency with which the Trump administration is approaching semiconductor policy. Intel has fallen behind rivals such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung in advanced chipmaking, raising concerns in Washington about America’s reliance on overseas suppliers. With global demand for AI and high-performance computing chips surging, reviving Intel is now viewed as both an industrial and a national security imperative.
President Donald Trump has long advocated for government intervention to strengthen U.S. manufacturing, and a government-backed national champion in semiconductors would mark one of his most ambitious steps yet. While Trump has criticized the CHIPS Act — calling for its repeal earlier this year — his administration has been renegotiating parts of the program. Converting Intel’s grants into equity would give Washington a direct say in Intel’s future while lowering the total amount of cash outlay from the government.
Some analysts argue that such intervention could be crucial, given Intel’s inability to gain a decisive foothold in the artificial intelligence boom. Despite heavy investments, the company has yet to secure major customers for its manufacturing business. Others contend that Intel’s troubles go deeper than capital needs and that government ownership alone will not solve its competitive weaknesses.
Tuesday’s news of government stake discussions came on the same day Japanese conglomerate SoftBank announced a $2 billion investment in Intel, purchasing shares at $23 each. The deal, equivalent to about 2% of Intel’s outstanding stock, makes SoftBank the company’s fifth-largest shareholder. SoftBank Chairman and CEO Masayoshi Son said the investment underscored his belief that “advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”
The twin developments sparked volatility in Intel’s shares. The stock had surged nearly 9% on Aug. 14 when initial reports of potential government investment surfaced. Shares fell more than 3% on Monday following Bloomberg’s report, but rebounded over 5% in after-hours trading on Robinhood after SoftBank’s investment was confirmed.
Intel CEO Lip-Bu Tan, who took the helm in March 2025, has been navigating both a corporate turnaround and mounting political scrutiny. Tan met with President Trump at the White House last week, after the president had previously called for his ouster over alleged ties to China. Following the meeting, Trump softened his stance, praising Tan as having “an amazing story.” It is unclear whether the possibility of a government stake was discussed during their meeting.
However, the combination of SoftBank’s investment and speculation about a government stake has placed Intel squarely at the center of Washington’s drive to restore U.S. semiconductor leadership. With tariffs, subsidies, and now potential direct government ownership all in play, Intel’s fortunes are increasingly being tied to industrial policy at the highest levels of power.