The Trump administration is in talks with Intel Corp. about a potential U.S. government stake in the struggling chipmaker, according to people familiar with the matter, in what would mark another high-profile intervention to bolster industries deemed critical to national security.
The discussions — first reported by Bloomberg News — center on shoring up Intel’s long-delayed semiconductor complex in Licking County, Ohio, once touted as the world’s largest chipmaking facility. While the size and structure of the potential stake remain unclear, people briefed on the talks said the government would fund the investment directly.
The plan follows a meeting this week between President Donald Trump and Intel Chief Executive Officer Lip-Bu Tan. Just last week, Trump had called for Tan’s removal over what he described as “highly conflicted” prior ties to China. The renewed engagement suggests Tan may remain in place if a deal is struck.
Intel shares jumped as much as 8.9% on Thursday before closing 7.4% higher at $23.86 in New York, valuing the company at $104.4 billion. The rally extended another 4% in after-hours trading.
White House spokesman Kush Desai cautioned that “discussion about hypothetical deals should be regarded as speculation unless officially announced,” while Intel said it was “deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership” but would not comment on “rumors or speculation.”
The move would mirror other recent government equity plays under Trump, including a 15% revenue share agreement on some semiconductor sales to China, a “golden share” in U.S. Steel Corp., and a $400 million Pentagon investment in rare-earth producer MP Materials Corp. These actions reflect an administration strategy — previously outlined by Bloomberg News — to blend equity investments, guaranteed purchases, and loans to fortify domestic champions in sectors competing with China.
For Intel, the financial boost could prove pivotal. Once a symbol of American chip dominance, the company has lost market share and technological ground in recent years. Its Ohio expansion, a centerpiece of former CEO Pat Gelsinger’s revival plan, has been repeatedly delayed — most recently until the 2030s — amid budget cuts and job reductions.
The talks also carry political weight. Ohio has been a stronghold for Trump in three straight presidential victories, and with Vice President JD Vance hailing from the state, the Ohio project aligns with both industrial policy and electoral strategy ahead of next year’s contests.
