plowunited.net – Intel has faced multiple challenges recently, including project delays and disappointing financial results. In response, the Trump administration is reportedly considering a significant step: acquiring a 10 percent ownership stake in the company. This move reflects growing federal interest in strengthening domestic semiconductor manufacturing amid global supply chain concerns.
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According to reports from Bloomberg and The New York Times. The administration is exploring converting the $10.86 billion in federal grants given to Intel under the U.S. Chips and Science Act into equity. These grants were originally designed to support Intel’s ambitious plan to build a semiconductor fabrication plant in Ohio. First announced in 2022. However, Intel has since delayed this Ohio facility, slowed down other international construction projects. And announced workforce reductions as part of cost-cutting efforts.
While discussions are still preliminary. The possibility of government ownership signals a shift in strategy from simply providing funding to taking an active stake in Intel’s future. The exact size and terms of the investment remain uncertain. Intel has not officially confirmed the potential deal but has reiterated its commitment to supporting U.S. technology leadership and working alongside the administration to meet shared goals.
This potential stake acquisition fits within a broader government push to reduce reliance on foreign semiconductor suppliers and bolster domestic chip production. With global chip shortages causing major disruptions. The U.S. government’s involvement in Intel could bring increased stability and resources to the struggling manufacturer.
Intel’s Evolving Relationship with the Trump Administration and Industry Implications
Intel’s relationship with the Trump administration has been complex. Earlier this year, President Trump publicly criticized Intel’s CEO Lip-Bu Tan over perceived ties with China and even called for his resignation. However, shortly afterward. Trump met with Tan, signaling a more positive outlook on Intel’s leadership and its potential role in U.S. technological competitiveness.
Intel’s statement to Bloomberg emphasized its strong commitment to advancing U.S. manufacturing and technology leadership alongside the administration. Though the company declined to comment on rumors. This cooperation suggests a shared vision for the future of American semiconductor production.
Experts see government ownership as a strategic measure to ensure Intel can keep pace with international rivals like TSMC and Samsung. By converting grants into equity, the government would have a direct interest in the company’s operational success, potentially influencing strategic decisions.
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The investment could bring benefits such as additional capital for expansion, improved supply chain security, and alignment with national economic priorities. However, it may also introduce new oversight and expectations on Intel’s governance.
As the semiconductor industry remains highly competitive and critical to national security, the outcome of this deal will be closely watched. If finalized, it could mark a new chapter for Intel and set a precedent for government involvement in key technology sectors.
