In a surprise twist, the Trump administration is exploring a plan to grab a 10% stake in Intel 💥. Bloomberg reports that the White House might convert part or all of Intel’s Chips Act grants—worth up to $10.9 billion—into equity. That would give Washington roughly $10 billion in Intel shares.
This move stems from a recent sit-down between Intel’s CEO Lip-Bu Tan and President Donald Trump, sparked by demands for Tan’s resignation over his alleged ties to Chinese firms. Now, instead of stepping down, Intel could get a state-backed boost to its foundry business, which has struggled to keep pace with rivals.
Analysts say federal support could be a game-changer. “If the US government is stepping in to save a blue-chip American company, Intel’s challenges must be even tougher than we thought,” notes David Wagner, head of equity at Aptus Capital Advisors. While Wagner admits he’s wary of using taxpayer cash, he’d rather see Washington invest than let Intel become fully state-owned.
This isn’t unprecedented. During the 2007–2009 financial crisis, the US took a stake in General Motors, exiting in 2013 after helping the auto giant turn around. Could Intel be next on the recovery runway? With its future roadmap still in question, all eyes are on how this Silicon Valley stalwart will rewrite its chip story 🎮🔋.
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U.S. government in talks to take 10% of Intel, Bloomberg reports
cgtn.com
