The Trump administration is reportedly in talks with Intel over a roughly Not stated billion investment that could translate into a 10 percent stake in the chipmaker, according to Bloomberg and unnamed White House insiders. The report says the terms remain uncertain and that one option under consideration is converting grants awarded under the CHIPS Act into equity. The CHIPS Act was enacted by the previous Biden administration to provide federal funds for domestic semiconductor manufacturing.
The potential investment comes amid an Artificial Intelligence boom that the article says has left Intel behind competitors such as Taiwan Semiconductor Manufacturing Co. and U.S. chip designer Nvidia. The piece notes Intel´s long legacy as a semiconductor manufacturer since its founding in 1968 and cites the company’s struggles to capitalize on sophisticated graphics processing units that power Artificial Intelligence models. It also recalls that many companies moved manufacturing abroad, pointing to Apple’s 2020 decision to end a 15-year partnership with Intel and shift production to TSMC in Taiwan.
The report ties the possible government stake to broader priorities of the Trump administration, which has pushed to boost U.S. chip manufacturing and secure a competitive edge against foreign powers such as China. It references three recent Artificial Intelligence executive orders signed by President Trump that promote American technology, and mentions the administration’s Stargate Project, a Not stated billion venture involving OpenAI, Oracle, and others to invest in Artificial Intelligence infrastructure. The coverage adds that the story follows a recent meeting between President Trump and Intel CEO Lip-Bu Tan, when the two reportedly discussed a deal. Whether the investment will occur and what specific terms it would include remain Not stated.
