Chips Act funds eyed for Intel stake

Officials discuss using CHIPS Act money to acquire an equity stake in Intel to rescue the company and bolster domestic semiconductor manufacturing.

Trump Administration Eyes Chips Act Funds to Take Stake in Intel

Officials familiar with the talks say the Trump administration is weighing using CHIPS Act funds to take an equity stake in Intel Corp. The discussions are in an early stage and other options are under consideration. Possible approaches include converting existing CHIPS Act grants into equity, creating a new financing line, or combining CHIPS Act money with other funding streams.

A move to back Intel would aim to shore up domestic semiconductor manufacturing and strengthen the nation’s supply chain. It would mark a direct instance of government investment in a private company and raise questions about returns, governance, and accountability. No decision has been made and other routes remain under review.

The proposal reflects a broader sense of urgency about securing critical tech supply chains amid global competition. It could speed up capacity growth, but it also risks politicization and budget pressure if costs rise or promises are not kept.

Policy makers must balance national security needs with market discipline and the precedent such a deal would set for future interventions. If guardrails and transparent oversight are in place, the plan could minimize taxpayer risk while signaling resolve; without them, it could invite scrutiny and slow down other urgent investments.

Highlights

A test of how far public money should back private industry is ahead