The Trump administration is reportedly in discussions to acquire a stake of approximately 10 per cent in Intel, potentially making the US government the largest shareholder in the chipmaker. This move involves converting some or all of Intel’s grants from the US Chips and Science Act into equity, according to sources familiar with the matter. Intel is slated to receive $US10.9 billion in Chips Act grants for commercial and military production.
Intel is a multinational corporation and technology company that specialises in designing and manufacturing semiconductor chips and microprocessors. The company’s products are used in a wide range of computing devices, from personal computers and servers to smartphones and embedded systems. The potential investment reflects the US government’s interest in bolstering domestic semiconductor manufacturing. A 10 per cent stake in Intel, based on its current market value, would be worth roughly $US10.5 billion.
The exact size of the stake and the ultimate decision to proceed with the plan remain uncertain. White House spokesman Kush Desai declined to comment on the specifics, stating that no deal is official until announced by the administration. The Commerce Department, which oversees the Chips Act, also declined to comment. Intel did not immediately respond to requests for comment.
The White House official also suggested that the administration might convert other Chips Act awards into equity stakes in other companies. However, it remains unclear whether this idea has gained broader support within the administration or whether officials have discussed this possibility with any affected companies. The situation remains fluid as discussions continue.
