Trump administration reportedly in discussions to acquire a share in Intel corporation.
The U.S. government has made a strategic move to support Intel Corporation's semiconductor production expansion, acquiring a 10% minority stake in the tech giant. This announcement was made by former President Donald Trump on August 22, 2025, stating that the U.S. "paid nothing for these shares," which are currently valued at about $11 billion.
The deal, which is still in its early stages according to both Bloomberg and The Wall Street Journal, follows months of private discussions and negotiations between the Trump administration and Intel. A key meeting on August 11, 2025, between Trump and Intel CEO Lip-Bu Tan, was a significant milestone in the process.
The government's investment is aimed at helping Intel shore up its financial position and accelerate its domestic chip manufacturing, particularly the much-delayed flagship manufacturing plant in Ohio. The Ohio plant, hailed as potentially the world's largest chip facility, has faced repeated delays and financial challenges, including workforce reductions.
Ohio lawmakers, including Senator Jon Husted, have expressed that government involvement might make sense to reduce production costs and secure strong customer demand, emphasizing the critical national importance of domestic semiconductor sourcing.
This U.S. stake marks a notable shift in government-industry relations, reflecting a strategic effort to bolster domestic semiconductor production amid global competition and supply chain concerns.
However, the specifics of the discussions about potential conflicts of interest have not been made public. Republican Senator Tom Cotton has asked the chairman of Intel's board to respond to questions about Bob Swan's ties to China. Intel has declined to comment on the specific discussions but noted its commitment to supporting President Trump's efforts to strengthen U.S. technology and manufacturing.
The potential deal, if it occurs, could strengthen Intel's position regarding the planned construction of a factory in Ohio, intended to be the world's largest semiconductor production site. The news of Trump's call for Bob Swan's resignation has resulted in a fluctuation in Intel's share price on the Nasdaq exchange. On August 14, Intel shares rose by 7.38%, trading at $23.86, but fell by more than 5% in the premarket exchange following the news of Trump's call.
The U.S. government's investment in Intel underscores the growing importance of domestic semiconductor production in the face of global competition and supply chain challenges. The implications of this deal for U.S. leadership in technology and manufacturing remain to be seen.
The U.S. government's investment in Intel, currently valued at about $11 billion, is aimed at helping Intel shore up its financial position, as part of a strategic effort to bolster domestic semiconductor production. This deal, if it occurs, could potentially reduce production costs and secure strong customer demand, particularly for the much-delayed flagship manufacturing plant in Ohio, which Intel is planning to construct.
