Trump administration weighs up to 10% Intel stake with CHIPS Act funds

The Trump administration is weighing a direct equity investment in Intel, potentially taking a government stake to speed the company’s plans to expand U.S. chip manufacturing. Discussions are in the early, fluid stages and follow a White House meeting between President Donald Trump and Intel chief executive LipBu Tan. If pursued, the move would mark a significant shift in how the federal government engages with private industry on critical technology, and it sent Intel’s shares higher as investors weighed the potential implications.

Details about the proposed arrangement remain under negotiation, but multiple reports indicate the government could acquire up to about 10 percent of the company. The terms could involve converting funds Intel has received under the CHIPS Act into an equity stake, a mechanism that would accelerate the government’s return on its support while giving Washington a tangible conduit to influence a key domestic asset. The discussions come as Intel’s long-delayed Ohio manufacturing complex continues to face scheduling and cost challenges, with production now projected to begin in the next decade rather than this year.

The possible investment arrives amid a...