President Donald Trump may be gearing up to purchase a good chunk of chipmaker Intel. According to a Bloomberg report on Tuesday, the Trump administration is discussing taking a 10% stake in Intel, 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.
This consideration is coming amid Intel receiving a major cash injection from SoftBank Group. Intel is getting a $2 billion capital injection from SoftBank Group in a major vote of confidence for the troubled U.S. chipmaker in the middle of a turnaround.
“Intel’s dual role as designer and manufacturer/fabricator uniquely positions it as potentially the best platform in the U.S. to compete with TSMC,” said Charu Chanana, chief investment strategist at Saxo.
READ: Intel CEO wins over Trump, days after the president called for his resignation (August 12, 2025)
The relationship between Intel and Trump has become a focal point in the intersection of technology, national security, and industrial policy. Amid Intel’s ongoing struggles, declining market share, strategic missteps, and delays in regaining manufacturing leadership, the company made a bold leadership change in March 2025, appointing Lip Bu Tan as CEO.
Tan, a respected semiconductor veteran and former Cadence Design Systems executive, brought deep industry knowledge but also raised political concerns due to his previous investments in Chinese tech companies, some with links to the Chinese military.
These ties became a flashpoint when Trump publicly called for Tan’s resignation on Aug. 7, labeling him “highly conflicted” and suggesting his leadership posed a national security risk. Trump’s statement triggered political debate and further shook confidence in Intel’s stability at a time when it was already under pressure from rivals like TSMC, Samsung, and Nvidia.
Surprisingly, tensions cooled after an Aug. 11 meeting between Trump and Tan at the White House. According to sources, the tone shifted from adversarial to constructive. Trump reportedly praised Tan’s immigrant success story and his contributions to the American tech industry. This reconciliation led to serious policy discussions, culminating in reports that the Trump administration is considering taking a 10% equity stake in Intel.
READ: Trump’s ‘Manhattan Project’ for chips could see Intel giving government a stake (August 18, 2025)
This potential investment, unprecedented in modern U.S. tech policy, would involve converting up to $10.9 billion in Chips and Science Act grants (previously earmarked for Intel’s expansion) into equity. With Intel’s market capitalization hovering around $100 billion, the U.S. government would become one of the company’s largest shareholders. The move is framed not as a bailout, but as a strategic investment to secure domestic semiconductor manufacturing and reduce reliance on Asia-based supply chains.
Reactions from the market were mixed. News of the potential government stake caused Intel’s stock to dip by around 3-4%, as investors feared dilution and tighter federal control. However, confidence rebounded quickly when SoftBank announced a $2 billion investment in Intel, acquiring just under a 2% stake at $23 per share. This was interpreted as a vote of confidence in Tan’s leadership and Intel’s future trajectory. Intel’s stock subsequently surged by up to 9%, reversing earlier losses and stabilizing investor sentiment.
This move reflects broader Trump-era economic policies aimed at reshoring manufacturing and asserting U.S. control over strategic industries. The administration has also pressured companies like Nvidia and AMD to reduce dependence on Chinese revenues and rerouted export approvals. With Intel, the approach blends pressure and partnership: what began as a political confrontation has transformed into a potential quasi-nationalization effort, an aggressive use of industrial policy not seen since the Cold War.
As of August 2025, no final deal has been confirmed, but the implications are clear. A 10% government stake in Intel would mark a historic pivot in U.S. tech governance, potentially serving as a model for future public-private partnerships in national security-sensitive sectors. Whether this bold move will catalyze Intel’s recovery or politicize its operations remains to be seen.