Trump Administration Considers Equity Stake in Intel via Chips Act Funds

The U.S. government is negotiating an unprecedented equity stake in Intel Corp. using funds from the Chips Act, signaling a shift toward state-sponsored tech ownership. Intel's stock surged 7.4% following the Bloomberg report, extending its rally to 15% since March—coinciding with Lip Bu Tan's appointment as CEO.

The potential deal WOULD convert grants or loans into direct government equity, providing capital for Intel's delayed Ohio chip factory. This move breaks from traditional free-market policies, reflecting the administration's push to revive domestic semiconductor production amid Intel's financial struggles and project delays.

Trump reversed his criticism of Intel's leadership after a private meeting with CEO Lip Bu Tan, praising his Cadence Design Systems track record in a Truth Social post. The policy shift comes as Washington seeks to counter China's semiconductor advances through direct industry intervention.