Intel Shares Surge Amid Reports of Potential US Government Stake
Intel’s stock price climbed more than 7% on Thursday after reports emerged that the US government may be considering taking a stake in the semiconductor giant.
Bloomberg reported that the Trump administration has held preliminary talks with Intel over a possible investment that could help fund the company’s plans to establish a large-scale manufacturing hub in Ohio. The size and terms of any potential stake have not been disclosed.
When asked about the report, White House spokesperson Kush Desai said discussions about hypothetical transactions should be treated as “speculation” until officially confirmed. Intel declined to comment directly on the matter but said it remained “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership.”
The report comes just days after Intel chief executive Lip-Bu Tan met with President Trump at the White House. The meeting followed criticism from the president, who previously accused Mr Tan of having “highly conflicted” ties to China.
Analysts say a potential government investment could serve as a crucial boost for Intel, which has seen its market value fall by more than half since 2020 to around $104 billion. Once a leader in chip technology, the company has struggled to keep pace in the fast-growing AI sector, losing ground to rivals such as Nvidia.
“This would be a lifeline for Intel,” said David Nicholson, a technology analyst at The Futurum Group. “It also reflects a broader trend of closer collaboration between governments and private industry, similar to what we’ve seen in China.”
Intel’s Ohio project – billed as a future mega-facility for semiconductor production – has faced repeated delays since being announced. Industry experts say the factory could be key to bolstering America’s domestic chipmaking capabilities, reducing reliance on overseas manufacturers like Taiwan’s TSMC and South Korea’s Samsung.
While direct government stakes in individual companies are rare in the US, analysts believe Intel could be an exception due to national security considerations. “Intel remains one of the few US-based firms able to produce advanced chips at scale,” noted Austin Lyons, a tech industry analyst. “If the US wants to compete globally, supporting Intel could be strategic.”
Raymond Woo of Kyoto University Innovation Capital suggested that Washington may opt for only a minority stake to maintain influence without taking full control. However, he warned that focusing solely on Intel could be risky and urged the government to consider supporting other domestic semiconductor players.
Mr Tan, who became Intel’s CEO in March, has been working to stabilise the company’s finances and regain lost ground in the AI chip market. Despite recent tensions, the Ohio facility remains central to Intel’s long-term ambitions – and possibly, to the future of US chipmaking.
