The U.S. government is negotiating to acquire a 10% stake in Intel by converting part of its Chips Act grants into equity, Bloomberg reported, citing a White House official and sources familiar with the matter. The move, valued at approximately $10 billion, would leverage funds already allocated to support Intel’s commercial and military semiconductor production under the 2022 legislation.
This potential investment follows a meeting between former President Donald Trump and Intel CEO Lip-Bu Tan, which reportedly addressed concerns over Tan’s alleged ties to Chinese firms. Analysts suggest federal backing could help Intel revive its struggling foundry business, though challenges persist in its product roadmap and customer acquisition for new facilities.
David Wagner, portfolio manager at Intel shareholder Aptus Capital Advisors, noted the intervention reflects deeper concerns about Intel’s competitiveness. “This signals that Intel’s position may be weaker than anticipated,” he said, adding that while taxpayer-funded corporate investments are contentious, they might prevent full state ownership.
The U.S. has historically taken equity stakes in companies during crises, such as its 2009 bailout of General Motors. The outcome of these talks could reshape domestic semiconductor production amid global tech rivalry.
