Intel Stock Surges on Potential US Government Stake Amid Chip Manufacturing Push

Intel shares surged over 7% following reports the TRUMP administration is considering taking a stake in the chipmaker to bolster domestic semiconductor production. The potential move comes as Intel delays its $20 billion Ohio fab complex, originally slated for 2025 production, to the 2030s amid ongoing turnaround challenges.

The Ohio facility, which could eventually expand to $100 billion in investment, represents a key piece of Intel's strategy to compete with TSMC in contract manufacturing. However, the company continues to face hurdles in advancing its 18A chip technology and attracting external foundry customers.

This development underscores the US government's intensified focus on reshoring chip production since the 2022 CHIPS Act. Both Trump and Biden administrations have prioritized reducing reliance on Asian semiconductor manufacturers through substantial public-private partnerships.