Intel Corporation’s stock jumped 7.4% following reports that the U.S. government is considering taking a stake in the chipmaker. The potential investment would reportedly support Intel’s Ohio-based manufacturing hub and strengthen the company’s finances amid ongoing cost-cutting measures, including significant job reductions.
The discussions reportedly followed a meeting between President Donald Trump and Intel CEO Lip-Bu Tan. The meeting came days after Trump publicly criticized Tan and called for his resignation over alleged connections to Chinese entities. Despite the criticism, industry sources suggest Tan is likely to remain in his role.
A White House spokesperson emphasized that talks remain speculative until formally confirmed. Nevertheless, investor reaction was immediate: Intel shares briefly rose as much as 8.9% before closing 7.4% higher at $23.86, bringing the company’s market capitalization to $104.4 billion.
The potential stake reflects ongoing U.S. government interest in strengthening domestic semiconductor production. Intel, as a major American chipmaker, could benefit from protective measures, including tariffs on imported chips, as part of broader national security and industrial policies.
Recent U.S. government actions in the semiconductor sector have included revenue-sharing agreements with Nvidia and AMD on Chinese AI chip sales, as well as a $400 million preferred stake in domestic rare earth producer MP Materials. An investment in Intel would highlight a more collaborative approach to supporting domestic technology firms, despite previous criticisms of the company’s leadership.
Intel has also faced scrutiny over CEO Lip-Bu Tan’s investments in Chinese technology companies, some reportedly linked to the People’s Liberation Army. The company has stated that it remains committed to U.S. national and economic security interests, emphasizing its 56-year history of manufacturing in America and alignment with government priorities.
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