The White House is exploring the possibility of acquiring a stake in Intel, as the semiconductor giant navigates ongoing challenges, according to sources cited by Bloomberg News.
The initiative, which remains under negotiation, could mean direct government involvement in a strategic sector that U.S. officials consider crucial to national security.
President Donald Trump has already demonstrated willingness to intervene in key industries, championing substantial federal partnerships in semiconductor manufacturing and rare-earth minerals. Past maneuvers include a notable arrangement with Nvidia and a deal with MP Materials to guarantee access to critical resources vital for U.S. supply chains.
Intel refrained from commenting on potential government investment, but emphasized its commitment to advancing U.S. technological leadership and supporting broader administration initiatives in the sector.
Shares of Intel responded strongly to news of the potential government backing, jumping more than 7% during Thursday’s regular session and climbing an additional 4.5% after hours.
The discussions come on the heels of a meeting in Washington this week between President Trump and Intel CEO Lip-Bu Tan. The dialogue followed Trump’s recent call for Tan’s resignation over his links to Chinese tech firms, including some rumored to have ties with Beijing’s military apparatus.
Since taking over Intel’s leadership about half a year ago, Tan has confronted the challenge of reversing setbacks that have left the company lagging in the surging AI chip arena — a sector where Nvidia currently dominates. Meanwhile, Intel’s aggressive spending to ramp up contract manufacturing has resulted in mounting losses, fueling speculation about the company’s future path and potential government intervention.
