The Trump administration is actively discussing taking a 10% stake in Intel Corporation through a groundbreaking conversion of CHIPS Act grants into equity, according to Bloomberg sources. The unprecedented move would make the U.S. government Intel's largest shareholder with a stake worth $10.4 billion at current valuations, fundamentally reshaping America's semiconductor strategy.
The Trump administration just put government ownership of America's semiconductor crown jewel on the table. According to Bloomberg sources familiar with White House discussions, officials are actively weighing a plan to convert Intel's massive CHIPS Act grants into a 10% equity stake, making Uncle Sam the chipmaker's biggest shareholder overnight.
The numbers tell the story: Intel's current market cap makes a 10% slice worth roughly $10.4 billion, nearly matching the $10.9 billion in CHIPS Act funding already awarded to the struggling semiconductor giant. The company received $7.9 billion for domestic manufacturing and another $3 billion for national security initiatives, making it the largest beneficiary of the 2022 legislation.
Markets initially celebrated the government intervention possibility, sending Intel shares up nearly 9% on August 14 when rumors first surfaced. But the reality remains fluid - Bloomberg's sources caution that the exact stake size "remains in flux" and it's unclear whether the White House will actually pull the trigger on this unprecedented move.
The timing couldn't be more critical for Intel, once America's undisputed chip champion but now struggling to keep pace with TSMC and Samsung in advanced manufacturing. The company has yet to secure major customers for its foundry business despite massive capital investments, while missing out on the AI boom that's enriched rivals like Nvidia.
"This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role," CEO Masayoshi Son said Tuesday, announcing a separate $2 billion investment that makes his firm Intel's fifth-largest shareholder according to LSEG data.
