White House confirms talks on 10% US stake in Intel

The White House confirmed Tuesday that the Trump administration is exploring a deal that could give the U.S. government a 10% ownership stake in semiconductor giant Intel.

“The president wants to put America’s needs first, both from a national security and economic perspective,” press secretary Karoline Leavitt told reporters.

Commerce Secretary Howard Lutnick said the plan under discussion would involve converting federal grants, approved under the Biden administration, into equity. “We should get an equity stake for our money,” Lutnick told CNBC. “Instead of just giving grants away, we’ll get ownership in return.”

The move, highly unusual for a private sector partnership, is aimed at supporting Intel’s effort to build a flagship chipmaking hub in Ohio and strengthen its position against rivals Nvidia, Samsung, and TSMC, especially in the fast-growing AI chip market.

Intel, which has lagged behind global competitors in advanced chip production, has not commented on the talks but said last week it is “deeply committed to supporting President Trump’s efforts” to bolster U.S. technology and manufacturing.

The confirmation comes days after Japan’s SoftBank announced a $2 billion investment in Intel, which helped push the company’s shares up nearly 7% in New York trading on Tuesday.

Analysts say a government stake would underscore Washington’s determination to shore up critical industries like semiconductors and defense. “It makes sense given Intel’s strategic role in domestic chip production,” said Vincent Fernando of consultancy Zero One.

But others warned that political involvement could complicate Intel’s turnaround. “Injecting government equity risks blurring the line between commercial discipline and political objectives,” said Dan Sheehan of Telos Wealth Advisors.

The discussions come as the U.S. chip sector faces mounting pressure from Washington. Last week, Nvidia and AMD agreed to hand over 15% of their China revenues to the federal government in exchange for export licenses, marking an unprecedented regulatory deal.