The U.S. government is weighing an unusual move: taking an equity stake in Intel. According to multiple reports, the Trump administration is in early talks about directly investing in the chipmaker to shore up its finances and speed up long-delayed manufacturing projects, especially the company’s $28 billion Ohio megafab. No structure or terms have been finalized yet.
Markets reacted fast. Intel stock jumped about 7% in late trading after the news broke and added another 2.6% after hours. Reuters noted an earlier 4% intraday rise, fueled by speculation that government backing could stabilize the company.
The rationale is both economic and strategic. Intel has struggled to keep pace with TSMC and Samsung in advanced chipmaking, and delays at its U.S. fabs have undermined Washington’s efforts to bring semiconductor manufacturing back onshore. A direct stake would go beyond the CHIPS Act’s grants and subsidies, signaling how seriously the administration views chipmaking as a matter of national security.
The political dynamics are also notable. CEO Lip-Bu Tan, who had faced criticism over alleged ties to Chinese firms, appears to have regained standing after a recent meeting with President Trump. Intel isn’t commenting beyond saying it remains “deeply committed” to U.S. manufacturing and considers talk of a government stake speculative.
If the deal happens, it would mark an unprecedented level of federal involvement in a private U.S. tech giant. For Intel, it could be the cash lifeline needed to finish its stalled projects. For Washington, it’s a gamble that tying national security directly to corporate ownership will accelerate America’s semiconductor comeback.