TL;DR:
• Trump administration discussing government stake in Intel to fund Ohio factories
• Intel stock jumps 7% on news, reversing months of decline
• Government funding would support Intel's struggling foundry business
• Move comes after CEO Lip-Bu Tan's White House meeting with Trump
The Trump administration is in talks to take a direct equity stake in Intel, sending the embattled chipmaker's stock soaring 7% Thursday as the government weighs unprecedented intervention to secure America's semiconductor future. The move would help fund Intel's massive Ohio factory expansion while marking a historic shift toward state capitalism in the tech sector.
Intel just became the center of the most dramatic government intervention in American tech history. According to Bloomberg's exclusive report, the Trump administration is actively discussing taking an equity position in the struggling semiconductor giant, with the government's stake specifically earmarked to bankroll Intel's ambitious Ohio manufacturing expansion.
The market's reaction was immediate and decisive. Intel shares rocketed 7% in Thursday trading, erasing weeks of losses as investors suddenly saw a government lifeline materializing for a company that's been hemorrhaging market share to NVIDIA in the AI chip wars while burning through billions on its foundry dreams. Wall Street had written off Intel's manufacturing ambitions just weeks ago, but Uncle Sam apparently has other plans.
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This isn't just about writing checks. Intel remains America's only homegrown manufacturer capable of producing cutting-edge processors on U.S. soil, a strategic asset that's taken on existential importance as chip supply chains become weapons of geopolitical warfare. While TSMC and Samsung are building U.S. facilities, they're foreign-controlled operations that could face restrictions during international crises.
The timing reveals just how precarious Intel's position has become. CEO Lip-Bu Tan, who took over earlier this year after the company's AI strategy collapsed, met with Trump at the White House just days ago. That meeting came after Trump had publicly called for Tan's resignation over alleged China ties, forcing Intel to issue a statement that Tan is "deeply committed to advancing U.S. national and economic security interests."