The Trump administration is reportedly in talks to buy a stake in Intel, a move that could reshape America’s semiconductor industry and give a jolt to the struggling chip giant.
Intel’s stock jumped more than 7 percent on Thursday — and then another 2.6 percent after hours, following a Bloomberg report that the U.S. government may step in as part-owner. The deal, still under discussion, would help fund Intel’s long-delayed factory project in Ohio.
The push came after a meeting this week between President Donald Trump and Intel CEO Lip-Bu Tan, joined by Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. Trump later teased the talks on Truth Social, calling the meeting “very interesting” and promising updates soon.
The irony: not long ago, Trump demanded Tan’s resignation over his past investments in Chinese tech firms tied to the Chinese military. Now the two are negotiating a potential government bailout.
Intel has not confirmed the deal, saying only that it remains “deeply committed” to boosting U.S. tech leadership. White House spokesman Kush Desai brushed off the chatter, warning that “hypothetical deals” should be seen as speculation until finalized.
Still, the timing is critical. Intel’s market value has cratered to $104 billion from $288 billion in 2020. Once the undisputed king of chips, the company has been overtaken by Nvidia in the booming AI sector and bled billions chasing contract manufacturing.
Its Ohio project, a $28 billion bet on U.S. chip independence, has been delayed by at least five years, with production now not expected until 2030 or later. A government stake could finally put it back on track.
For Trump, the move would add to his growing list of aggressive interventions in the chip race. Earlier this week, he struck a deal with Nvidia allowing the company to resume some AI chip exports to China — in exchange for handing a cut of sales to Washington.
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