California: Shares in Intel have risen more than 7 percent after reports that the Trump administration is in talks to acquire a stake in the chipmaker.
Bloomberg said the move would back Intel’s plans to build a major manufacturing hub in Ohio, though the size of the potential investment remains unclear. White House spokesman Kush Desai called any talk of such a deal ‘speculation unless officially announced by the administration.’ Intel declined to comment, but a spokesperson stressed the company’s commitment to supporting President Trump’s push to strengthen US technology and manufacturing leadership.
The report follows a recent meeting between Intel CEO Lip-Bu Tan and President Trump, who had previously accused Tan of being ‘highly conflicted’ over past ties to China. Analysts say the potential deal could serve as a ‘lifeline’ for Intel, which has lagged behind rivals such as Nvidia in the AI chip race.
The company’s market value has fallen by more than half to $104 billion since 2020, and its ambitious Ohio plant, once touted as the future world’s largest chip facility has faced repeated delays.
Tech analyst Austin Lyons noted that while it is rare for Washington to directly support a single company, Intel represents America’s best chance to compete with global giants like TSMC and Samsung, making the case a special one.
The development comes with increased government intervention in the semiconductor sector, with Nvidia and AMD agreeing this week to pay 15 percent of their Chinese revenues to the US government.
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