U.S. government eyes Intel stake to boost semiconductor competitiveness

The U.S. government is reportedly in talks with Intel to acquire a stake in the company, as part of a broader effort to bolster domestic semiconductor manufacturing and compete globally [1]. The proposed investment comes amid ongoing delays at an Intel manufacturing facility in Licking County, Ohio, which was initially envisioned as the world’s largest chipmaking plant. These delays have been attributed to Intel’s precarious financial situation, which has hindered its ability to keep pace with global rivals such as Taiwan’s TSMC, Japan’s Samsung, and GlobalFoundries [1].

The initiative reportedly originated from a recent meeting between U.S. President Donald Trump and Intel CEO Lip-Bu Tan, according to a Bloomberg report. While the exact size of the government stake remains undisclosed, the potential deal has sparked speculation about how federal support could reinvigorate Intel’s operations and align with national priorities for technological self-sufficiency [1]. A federal cash infusion would not only provide much-needed liquidity but also serve as a strategic move to ensure the U.S. maintains a competitive edge in the global semiconductor industry.

The news has already had a tangible impact on the stock market: Intel shares rose 8% following the announcement, reflecting investor optimism about the potential partnership [1]. However, the deal is not without its challenges. Former Intel CEO Craig Barrett has highlighted the company’s ongoing financial constraints, noting that Intel is "cash poor" and struggling to fund the necessary infrastructure and capacity to compete globally [1].

The broader context of the proposed investment includes a shifting U.S. export control policy that has increasingly prioritized economic competitiveness over national security defense. A recent administration initiative—such as Trump’s involvement in shaping the Nvidia-AMD relationship—has signaled a recalibration of this strategy [1]. This shift suggests that the U.S. government is willing to take a more active role in supporting domestic tech firms, particularly those critical to the future of artificial intelligence and advanced manufacturing.

While the outcome of the proposed deal remains uncertain, the fact that it is under active consideration underscores the high stakes involved in the global semiconductor race. The government’s willingness to invest in Intel could provide a much-needed lifeline for the company and reaffirm its role as a key player in the U.S. tech ecosystem. The final terms of any agreement will likely hinge on both financial and strategic considerations, with the broader goal of ensuring that the U.S. remains a leader in next-generation technology [1].

Source: [1] What a U.S. government investment does for Intel. (https://fortune.com/2025/08/15/what-a-u-s-government-investment-does-for-intel/)