Trump administration eyes 10% Intel stake

The Trump administration is in talks to take a 10 percent stake in Intel, potentially converting Chips Act grants into equity.

Trump Admin Weighs 10% Stake in Intel as Shares Tumble

Bloomberg reports the talks could see the government acquire about 10 percent of Intel (INTC), turning part of the Chips Act grant into an ownership stake. At current prices the stake would be worth about $10.5 billion, and it could position the government as Intel’s largest shareholder. Intel has received about $2.2 billion in Chips Act funds as of January, with more grant money available upon milestones.

The prospect follows mixed signals from the White House about Intel's leadership and policy direction. If realized, the arrangement would align public funding with private ownership and raise questions about governance, oversight, and how market expectations are managed. Investors pushed INTC lower by roughly 4% after the Bloomberg report, underscoring how financial markets react to potential political risk and policy leverage.

This move tests the boundary between public support and private power. A stake of this size would place taxpayers at the table where corporate strategy is decided, a shift that demands clear oversight and transparency.

It could reshape how policymakers use incentives in core industries, affecting not just Intel but the broader chip sector and investor confidence. The optics matter as much as the numbers, and bipartisan support for the Chips Act could face renewed scrutiny.

Highlights

The coming weeks will reveal how public money interacts with private enterprise.