The Trump administration is weighing a plan to acquire a roughly 10% stake in Intel Corp., a move that could make the United States government the chipmaker’s largest shareholder, according to reporting by Bloomberg.
Citing a White House official and people familiar with the matter, Bloomberg said discussions are underway to convert some or all of Intel’s $10.9 billion in grants from the US Chips and Science Act into equity. Intel is the largest recipient of funding from the legislation, which was designed to boost domestic semiconductor production for both commercial and military purposes.
At Intel’s current market valuation, a 10% stake would be worth about $10.5 billion, aligning closely with the total Chips Act awards earmarked for the company. The precise size of the potential stake — and whether the White House will move ahead — remains undecided, sources told Bloomberg.
The news rattled markets. Intel shares fell as much as 5.5% after Bloomberg reported the talks on Monday, reversing part of last week’s 23% surge — the company’s strongest weekly performance since February.
White House spokesman Kush Desai declined to comment on specifics, saying only: “No deal is official until it’s announced by the administration.” Intel has not publicly responded to the report.
The administration is also said to be considering converting other Chips Act awards into equity stakes in US tech and manufacturing firms, though it is unclear whether the idea has gained broader traction. Last month, the Pentagon took a $400 million preferred equity stake in MP Materials Corp., a rare-earth producer, marking an unprecedented move that made the Defense Department the company’s largest shareholder.
For Intel, the structure of its Chips Act funds could significantly change under a potential equity deal. Typically, such awards are disbursed in stages as companies meet project milestones. Intel had received about $2.2 billion in grant disbursements as of January, though it remains unclear whether those funds would be counted toward the proposed equity stake.
If approved, the deal would mark one of the most significant federal interventions in a major US technology company, underscoring Washington’s growing concerns about safeguarding the domestic semiconductor supply chain amid escalating competition with China.
