Intel in Talks with U.S. Government for Potential Investment

Intel is reportedly in talks with the U.S. government for a potential investment to support its domestic manufacturing expansion. The Trump administration is considering purchasing shares in Intel to aid the company's proposed Ohio plant, which has faced delays. The scale of the potential investment is unclear, but an agreement would strengthen Intel's financial position.

Intel (INTC) is reportedly in discussions with the U.S. government for a potential investment aimed at supporting its domestic manufacturing expansion. The Trump administration is considering purchasing shares in the chipmaker to aid Intel's proposed Ohio plant, which has faced delays. The scale of the potential investment is unclear, but an agreement would significantly bolster Intel's financial position.

The talks emerged following a meeting between President Donald Trump and Intel CEO Lip-Bu Tan earlier this week. According to Bloomberg [1], the meeting led to discussions about an unusual deal where the government would pay for a stake in Intel. The specifics of the agreement are still being worked out, but the potential investment could help Intel regain its footing in the semiconductor industry.

The White House is reportedly interested in bolstering Intel's domestic manufacturing capacity, particularly with the company's much-delayed fabrication hub in Ohio. The facility is intended to become the world's largest chip manufacturing facility, but it has faced numerous delays. An investment from the U.S. government could provide the necessary financial support to bring this project to fruition.

Intel's shares (INTC) rose more than 7% on Thursday, following Bloomberg's report about the talks [1]. The company's stock has been volatile in recent months, reflecting the challenges it has faced in the semiconductor industry. An investment from the U.S. government could provide a much-needed boost to Intel's financial position and help it regain market share.

The White House has been weighing opportunities to take similar stakes in various U.S. companies in critical industries. Last month, American rare-earth materials company MP Materials announced a multibillion-dollar package of investments and long-term purchase commitments from the U.S. Department of Defense [2]. Additionally, US chipmakers AMD and Nvidia agreed to pay the U.S. government 15% of their revenues from semiconductor sales to China in exchange for licenses to restart exports there [3].

The Trump administration's interest in investing in Intel is part of a broader effort to increase domestic manufacturing, particularly of key tech products and components such as semiconductors and artificial intelligence data centers. An investment in Intel could serve as a model for other investments by the Trump administration in critical industries.

The deal is still in the early stages, and it is unclear when or if such an agreement might be inked. However, if it were to happen, it could have significant implications for Intel and the broader semiconductor industry. The company is deeply committed to supporting the administration's efforts to strengthen U.S. technology and manufacturing leadership [1].

References:
[1] https://www.cnn.com/2025/08/14/tech/intel-trump-us-government-investment
[2] https://www.calcalistech.com/ctechnews/article/gjy67txm6
[3] https://wccftech.com/intel-shares-spike-as-the-trump-administration-reportedly-mulls-a-stake-to-boost-domestic-chip-manufacturing-capacity/