Lip-Bu Tan, chief executive officer of Intel Corp., departs following a meeting at the White House in Washington, DC, US, on Monday, Aug. 11, 2025.
Alex Wroblewski | Bloomberg | Getty Images
Intel stock rose 7% in trading on Thursday after Bloomberg reported that the Trump administration is in talks with the chipmaker to have the U.S. government take a stake in the embattled company.
Intel is the only U.S. company with the capability to manufacture the fastest chips on U.S. shores, although rivals including TSMC and Samsung also have U.S. factories. President Trump has called for more chips and high technology to be manufacture in the U.S.
The government’s stake would help fund factories it’s currently building in Ohio, according to the report.
The news about the discussions comes days after Intel CEO Lip-Bu Tan visited Trump in the White House. That meeting came after Trump had called for Tan’s resignation based on allegations he has ties to China.
Intel said at the time that Tan is “deeply committed to advancing U.S. national and economic security interests.” An Intel representative declined to comment on the discussions on Thursday.
“We look forward to continuing our work with the Trump Administration to advance these shared priorities, but we are not going to comment on rumors or speculation,” the spokesperson said.
Tan took over Intel earlier this year after the chipmaker failed to gain significant share in AI chips, while it was spending heavily to build its foundry business, which manufactures chips for other companies.
Intel’s foundry business has yet to secure a major customer, which analysts say would allow it to be confident in spending to build new factories, and which would be a signal to other chip companies to consider Intel for manufacturing.
In July, Tan said that Intel was cancelling plans for manufacturing sites in Germany and Poland and would slow down development in Ohio and that spending at the chipmaker would be closely scrutinized.
Under Trump, the U.S. government has increasingly moved to put itself at the center of deals in major industries. Last week, it said it would take 15% of certain Nvidia and AMD chip sales to China. The Pentagon bought a $400 million equity stake in rare-earth miner MP Materials. It also took a “golden share” in U.S. Steel as part of a deal to allow Nippon Steel to buy the U.S. industrial giant.
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