WASHINGTON — President Trump’s administration is in discussions to potentially invest in Intel, a move aimed at bolstering domestic chip manufacturing and security.
“Such reports remain speculative until confirmed,” said White House spokesman Kush Desai.
Strategic and Market Impact
The announcement followed a high-profile meeting between Trump and Intel CEO Lip-Bu Tan. Shares surged more than 7% as the stock rallied on hopes of government support. Proponents see it as a national security commitment, while skeptics warn of risky state intervention in private firms.
Background and Significance
Once a global semiconductor leader, Intel has lagged in AI chip production and lost market share to rivals like Nvidia. Its $28 billion Ohio chip plant, supported by the CHIPS Act, remains delayed. A government stake could help unlock this donor factory project and reshape U.S. semiconductor competitiveness.
Implications for Industry
Government involvement could coordinate chip buy-ins with other U.S. companies and propel domestic fabrication, but it also raises concerns about long-term private sector autonomy. Intel reaffirmed its commitment to U.S. tech leadership while the White House downplayed the talks.