Trump administration in talks to buy 10% stake in Intel: Report

ISTANBUL

The US government is in talks with Intel to acquire a 10% stake in the chip giant, in a move that could make the administration the biggest shareholder of the company, Bloomberg reported Monday.

The Trump administration is thinking about investing in Intel, which would include turning part or all of the company's US Chips and Science Act funds into shares, the report said, citing a White House Official and people familiar with the matter.

Chips Act funding totaling $10.9 billion have been planned for Intel's commercial and military manufacture, according to Bloomberg.

The desired stake percentage can be paid for with the amount, while a 10% share in the chipmaker would be worth around $10.5 billion at Intel's current market value, it said.

According to the sources, there is still uncertainty over the precise stakes and if the White House would proceed with the plan.

The government may turn additional Chips Act prizes into stock holdings, a White House source hinted. It is unclear if officials have discussed the concept with any potentially impacted firms or if it has garnered traction across the government, according to Bloomberg.

In an unprecedented step last month, the Defense Department announced that it will become the largest stakeholder in the little-known US rare-earth manufacturer MP Materials Corp. by acquiring a $400 million preferred ownership position.

Intel's grant funds were initially intended to be distributed gradually when the business reached agreed-upon project milestones, as is the case with all Chips Act recipients. As of January, Intel had already been paid over $2.2 billion in grants.

The move by the government followed US President Donald Trump's meeting with the CEO Lip-Bu Tan last week. Trump described Tan’s “success and rise” as an “amazing story.”

The meeting was “a very interesting one,” attended by US Secretary of Commerce Howard Lutnick and Treasury Secretary Scott Bessent, Trump wrote on Truth Social.

He said Tan and his Cabinet members are going to spend some time together, “and bring suggestions,” without elaborating further.

Earlier this month, Trump demanded that Tan resign "immediately" for alleged ties to Chinese companies with military connections.

"The CEO of INTEL is highly CONFLICTED and must resign, immediately," Trump wrote on US social media company Truth Social, which he owns. "There is no other solution to this problem.”