U.S. Government in Talks to Acquire Stake in Intel: Report

Intel is reportedly in discussions with the Trump administration about the U.S. government taking a stake in the struggling chipmaker, according to Bloomberg. Sources familiar with the matter said the move would align with President Donald Trump’s broader push to secure supply chains in industries seen as critical to national security, including semiconductors and rare earth materials.

Talks come as Intel grapples with declining market share in the booming AI chip sector, which is currently dominated by Nvidia, and heavy losses tied to its ambitions in contract chip manufacturing. The potential government investment follows a meeting earlier this week between Trump and Intel CEO Lip-Bu Tan — just days after the president publicly called for Tan’s resignation over his investments in Chinese tech firms, some reportedly linked to the Chinese military.

While details of the deal, including the size and valuation of a potential stake, are still being hammered out, analysts said the administration could use such an arrangement to push major customers like Apple, Nvidia, and AMD toward Intel’s foundry services, potentially with tariff incentives.

Last month, Intel warned it might exit chip manufacturing entirely if it fails to secure external customers, even slowing construction at its Ohio facilities.

Government stakes in U.S. companies aren’t unprecedented, though they’re typically reserved for firms in acute financial distress. Despite its troubles, Intel still brings in over $50 billion annually, raising questions over whether the chipmaker truly needs direct federal assistance — or whether this is more about national security and encouraging domestic silicon production rather than immediate survival.