Trump administration reportedly weighs 10% stake in Intel via Chip Act grants, making government top shareholder
Key Takeaways
The Trump administration is reportedly discussing a deal to take a 10% stake in Intel, which could potentially leverage Chips Act funding as part of the equity.
Article Overview
Quick insights and key information
4 min read
Estimated completion
investment
Article classification
August 19, 2025
06:38 AM
CNBC
Original publisher
Lip-Bu Tan, CEO of Intel, departs the White House in Washington, DC, U.S., on Monday, Aug. 11, 2025
Alex Wroblewski | Bloomberg | Getty ImagesThe Trump administration is discussing taking a 10% stake in Intel, according to a Bloomberg report on Tuesday, in a deal that could see the U.S. government become the chipmaker's largest stakeholder.As part of a potential deal, the government is also considering converting some or all of Intel's grants from the 2022 U.S
CHIPS and Science Act into equity in the company, the report said, citing a White House official and other people familiar with the matter.At the embattled chipmaker's current market value, a 10% stake would be worth roughly $10.4 billion
Meanwhile, Intel has been awarded $10.9 billion in Chips Act grants, including $7.9 billion for commercial manufacturing and $3 billion for national security jects.Stock Chart IconStock chart iconIntel investors had initially welcomed news of the government investment, which resulted in a rally of nearly 9% on Aug. 14.The report noted, however, that it remains un if the idea has gained traction broadly within the administration or whether officials have broached the possibility with affected companies.It added that the exact size of the stake remains in flux, and it remains un whether the White House will actually ceed with the plan
Intel and the White House did not immediately respond to CNBC's queries regarding the report
Intel, once a dominant force in the U.S. chip industry, has fallen behind global competitors in advanced chip manufacturing
Reviving the former U.S. chip champion has become a national priority in Washington, with reports a potential government stake in the company first circulating last week.The company has been the largest recipient of the 2022 Chips Act, passed with bipartisan support under the Biden administration, as part of efforts by Washington to revitalize U.S. leadership in semiconductor manufacturing.The bill allocated $39 billion in grants for American semiconductor manufacturing jects, with funding committed to many of the world's chipmakers such as TSMC and Samsung, as well as American chip companies such as Nvidia, Micron and GlobalFoundries
President Donald Trump, though supporting the general goals of the Chips Act, has been a vocal critic of the bill and even called for its repeal earlier this year
While republican lawmakers in Washington have been reluctant to act on that call, U.S
Commerce Secretary Howard Lutnick said in June that the administration was renegotiating some of the bill's grants
If Intel's Chip Act funds were to be converted into a potential government stake in the company, it could decrease the total amount of capital infused into the company as part of any deal by Washington
However, it would serve as the example of the Trump administration's interest in building government-backed national champions in strategic industries.Intel has struggled to gain an advantage in the artificial intelligence boom and has yet to capture a significant customer for its manufacturing despite spending heavily on it
Some analysts have argued that government intervention is essential for the struggling chipmaker and for the sake of U.S. national security
Others contend that Intel's blems are deeper than funding, and it is not how the government can help with that
Analysts have also noted that Trump may be able to sway companies to buy Intel chips or assist indirectly, through tariffs and regulation.On Tuesday, it was announced that SoftBank was $2 billion in Intel
According to LSEG, the investment is worth 2% of Intel, making SoftBank the fifth-biggest holder
Masayoshi Son, Chairman & CEO of SoftBank Group, said: "This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role."Intel investors had initially welcomed news of the government investment, which resulted in a rally of nearly 9% on Aug. 14. s of Intel fell over 3% on Monday on the Bloomberg report, but rebounded by more than 5% in overnight trading on the trading platform Robinhood ing news of a Softbank investment.Intel CEO Lip-Bu Tan, who was appointed in March 2025, met with Trump at the White House last week, after the U.S. president had called for his ousting due to his past ties to China
After the meeting, Trump had changed his tune on the Intel chief, saying he had "an amazing story." It's un if a potential government stake in the company had been discussed at the time.Read the full Bloomberg story here.
Related Articles
More insights from FinancialBooklet