Trump Administration Considers Investing in Intel

According to sources familiar with the discussions, the Trump administration is contemplating purchasing shares in the troubled chipmaker Intel to support a factory project in Ohio that has faced delays.

Bloomberg reports that this reflects the administration’s increasing willingness to step in directly with key industries. Talks with Intel about acquiring shares have been ongoing, with the initiative aimed at bolstering Intel’s planned manufacturing hub in Ohio, as noted by those familiar with the matter.

This consideration follows a recent meeting between President Donald Trump and Intel’s CEO, Rip Bu Tang. Trump had previously raised concerns about Bu Tang’s connections to China, calling him “very conflicted.” Details on the potential size of the stake being discussed are not clear, as the situation remains fluid and could lead to no agreement at all.

Intel’s stock saw a jump of 7.4% reaching $23.86 in New York, following nearly a 9% increase related to the news, bringing the company’s market valuation to about $104.4 billion. The positive momentum continued to carry on after hours, with further increases observed on Friday morning.

While the White House refrained from commenting on this “hypothetical deal,” Intel reaffirmed its commitment to supporting the administration’s efforts aimed at enhancing U.S. technology and manufacturing leadership, though it avoided commenting on the current speculations.

This potential move aligns with broader intervention trends by the Trump administration within significant industries. Recently, the administration agreed to a 15% reduction on certain semiconductor sales to China while gaining a “golden share” in U.S. steel as part of a sales clearance agreement.

Furthermore, it appears that the Department of Defense will repeat its shares in MP Materials Corp., a key rare earth producer, with a significant $400 million preferred stock investment, thus making the Pentagon the largest stakeholder in the company. Such actions highlight a shift in how the federal government is engaging with private industries that are considered critical for national security and in relation to competition with China.

Once a leader in the chip industry, Intel has faced challenges in recent years, including lost market share and diminishing technological advantages. The Ohio plant expansion was part of a recovery strategy under former CEO Pat Gelsinger, but financial hurdles have jeopardized the project, pushing its timeline back to the 2030s.