The Trump administration is in talks to acquire a 10% stake in Intel Corp, potentially making the U.S. government the chipmaker’s largest shareholder, according to officials familiar with the matter.
The proposal involves converting a portion of the $10.9 billion in Chips and Science Act grants allocated to Intel—meant for both commercial and military chip production—into equity. At Intel’s current market valuation, a 10% stake would be worth around $10.5 billion.
The size of the stake and the likelihood of the plan moving forward remain uncertain. Intel shares fell 5.5% after Bloomberg reported the talks, though they had surged 23% last week, marking their best weekly rally since February.
A White House spokesperson declined to confirm details, stressing that no deal is final until officially announced. Intel has yet to issue a statement.
The move would mirror a recent precedent: in July, the U.S. Defense Department took a $400 million preferred equity stake in MP Materials Corp, becoming its largest shareholder.
Intel has so far received $2.2 billion in Chips Act disbursements, with further payouts tied to project milestones. It’s unclear whether those funds would be folded into the potential equity arrangement.
