U.S. Government Considers Acquiring 10% Stake in Intel to Strengthen Domestic Chip Manufacturing

The Trump administration has explored the option of acquiring a 10 percent ownership in Intel as part of a federally supported initiative to revive the struggling American chipmaker and strengthen the domestic semiconductor industry, according to sources with knowledge of the discussions who requested anonymity.

This plan involves potentially converting approximately $10.86 billion in recent federal grants into equity stakes in Intel, whose market valuation is near $100 billion, according to multiple insiders.

Such an intervention would rank among the most significant federal investments in a U.S. corporation since the government’s bailout of the automotive sector during the 2008 financial crisis, when billions were injected to save Chrysler and General Motors, preserving more than a million jobs in the auto industry.

While the current economic landscape differs from that period, the federal government has demonstrated a proactive approach to taking ownership interests in companies. Earlier this year, it secured a “golden share” in U.S. Steel as part of approving its acquisition by Japan’s Nippon Steel.

The financial support for Intel was awarded under the 2022 CHIPS and Science Act, a bipartisan legislative package that allocated $39 billion to subsidize semiconductor manufacturing and reduce reliance on foreign suppliers for critical technology used in devices ranging from smartphones to military equipment.

Intel’s federal grants are designated for projects across Arizona, New Mexico, Ohio, and Oregon. As the nation’s remaining advanced chip manufacturer, Intel also secured a multi-billion-dollar contract to supply semiconductors to the Department of Defense.