Shares of Intel Corporation surged by more than 7% on Thursday following reports that the Trump administration is in talks to acquire a stake in the struggling semiconductor giant. The potential government investment is aimed at supporting Intel’s plans to build a major chip manufacturing hub in Ohio, a project that has faced repeated delays.
According to Bloomberg, sources familiar with the discussions revealed that the size and specifics of the U.S. government’s potential investment remain unclear, with ongoing negotiations still fluid and no final agreement yet reached. The talks reportedly stemmed from a recent meeting between President Donald Trump and Intel CEO Lip-Bu Tan, held shortly after Trump publicly called for Tan’s resignation over his past ties to Chinese technology firms.
The proposed partnership would provide Intel with much-needed financial backing amid cost-cutting efforts and workforce reductions as the company grapples with falling behind rivals in advanced chip technology, especially in the AI sector. Intel has historically been the only American company capable of producing the fastest chips domestically, making the support crucial to revitalizing the U.S. semiconductor industry.
White House spokesperson Kush Desai cautioned that these discussions should be viewed as speculation until officially confirmed but emphasized the administration’s commitment to bolstering U.S. leadership in technology and manufacturing.
Industry analysts described the potential infusion as a significant lifeline, which could enhance confidence in Intel’s foundry business and encourage American fabless chipmakers to leverage Intel’s facilities. However, some analysts warned that government support, while helpful, may not address the company’s underlying competitiveness challenges in cutting-edge chip production.
The Ohio chip facility project, initially announced in 2022 with an estimated $20 billion investment potentially rising to $100 billion, aims to create one of the largest semiconductor manufacturing complexes in the world. The facility’s chip production timeline has been pushed back from 2025 to the early 2030s, underscoring the complexities Intel faces in ramping up capacity.
Following news of the talks, Intel’s shares continued to gain momentum in after-hours trading, reflecting investor optimism about the company’s prospects with potential federal backing.
This development highlights the increasing strategic role of government intervention in critical technology sectors, particularly in semiconductor manufacturing, which is vital to national security and economic competitiveness amid global supply chain uncertainties.
Intel declined to comment directly on the reported discussions but reaffirmed its support for initiatives seeking to advance U.S. manufacturing leadership.
The potential U.S. government stake in Intel comes as part of broader efforts by the administration to strengthen domestic semiconductor production and reduce reliance on overseas supply chains, following legislation such as the CHIPS Act enacted to promote American technology sovereignty.
The outcome of these talks will be closely watched as a bellwether for public-private partnerships in the evolving semiconductor landscape.
