U.S. government could take a 10 percent stake in Intel, report says

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U.S. government could take a 10 percent stake in Intel, report says

The Trump Administration is reportedly in talks with Intel for a roughly $10 billion investment in the languishing chipmaker..

According to Bloomberg via unnamed White House insiders, the U.S. government is looking at a 10 percent stake in the company, or around $10.5 billion, based on its market value. The terms of the deal, or whether it even happens, are still uncertain. But one option could be converting grants awarded under the CHIPS Act into equity. The law was enacted by the previous Biden Administration to provide federal funds for domestic semiconductor manufacturing.

Amid the AI boom, Intel has fallen behind foreign competitors like Taiwan Semiconductor Manufacturing Co. (TSMC) and U.S. chip giant Nvidia. President Trump has made it a priority to boost chip manufacturing in the U.S. and secure a competitive edge against foreign powers such as China. One of the three recent AI executive orders signed by Trump promotes American technology domestically and abroad. And one of his first tech-related actions as president was announcing the Stargate Project, a $500 billion venture with OpenAI, Oracle, and others to invest in AI infrastructure.

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Intel, which was founded in 1968, has a long legacy of semiconductor manufacturing, but has failed to capitalize on the sophisticated GPUs that power AI models. Even before the mainstream emergence of AI, many companies moved their manufacturing abroad. In 2020, Apple ended a 15-year partnership with Intel for its devices and tapped TSMC in Taiwan to make its chips, opting for cheaper, more advanced processors.

A U.S. government investment could revive Intel's flagging status and line up with the Trump Administration's plans to produce American-made tech. This report comes after Trump met with Intel CEO Lip-Bu Tan last week to reportedly discuss a deal.

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