{"id":5637,"date":"2025-08-15T17:29:46","date_gmt":"2025-08-15T17:29:46","guid":{"rendered":"https:\/\/friscotimes.org\/?p=5637"},"modified":"2025-08-17T04:14:03","modified_gmt":"2025-08-17T04:14:03","slug":"days-after-intel-ceo-meets-with-trump-the-federal-government-is-reportedly-negotiating-a-stake-in-the-chips-champion","status":"publish","type":"post","link":"https:\/\/friscotimes.org\/?p=5637","title":{"rendered":"Days after Intel CEO meets with Trump, the federal government is reportedly negotiating a stake in the chips champion"},"content":{"rendered":"\n

In a potentially dramatic shift for corporate America and U.S. industrial policy, the Trump administration is actively considering a plan to buy a direct stake in Intel, one of the world\u2019s largest and most strategically important chipmakers and the recent target of fierce criticism from the president himself. These revelations, first reported by Bloomberg<\/a>, triggered an immediate surge in Intel\u2019s stock\u2014jumping by as much as 8.9% in late Thursday trading as investors responded to the possibility of government intervention and support for the beleaguered firm.<\/p>\n

\n

This kind of direct government investment in a tech giant marks a notable departure from the more hands-off approach favored by nearly all previous U.S. administrations. Traditionally, federal support for chipmaking came mainly in the form of grants or subsidies, such as those allocated under the CHIPS Act. Trump\u2019s approach appears to favor direct equity stakes, echoing recent White House moves in other sectors, such as the federal government taking\u00a0a \u201cgolden share\u201d\u00a0while allowing Nippon Steel to acquire U.S. Steel, and the Department of Defense buying $400 million in preferred shares in MP Materials, a miner of rare-earth minerals.<\/p>\n

Motivations and political context<\/h2>\n

The rationale for this move centers on strengthening U.S. technological independence, with Intel being the only major semiconductor company producing advanced chips at scale inside the U.S. Its planned mega-plant in Ohio\u2014originally announced in 2022 as a $20 billion investment\u2014has faced repeated delays amid struggles to compete with global leaders such as TSMC and Samsung.<\/p>\n

The semiconductor sector is increasingly seen as crucial for everything from smartphones to weaponry. Trump\u2019s critics often cite \u201cstate capitalism<\/a>,\u201d but supporters argue direct support for Intel is essential for national security<\/a>, technological leadership, and economic growth, especially as China, Taiwan, and South Korea pour resources into their own chip industries.<\/p>\n

The current situation at Intel<\/h2>\n

Intel has been reeling from a series of setbacks. In 2024, its stock lost 60% of its value\u2014the sharpest drop in its history<\/a>. The company missed key opportunities in AI chips, and its foundry business, aimed at producing chips for other firms, is reportedly struggling to win major clients.<\/p>\n

Intel\u2019s new CEO, Lip-Bu Tan, was named after the board ousted Pat Gelsinger last year in an effort to accelerate a turnaround. Tan has already scaled back ambitions for the Ohio plant, deferring expansions and taking a cautious, demand-driven approach. His past investments in Chinese semiconductor firms drew pointed criticism after a bombshell Reuters investigation in April<\/a>\u2014so much so that President Trump publicly called for his resignation last week over allegations that Tan was \u201chighly conflicted\u201d with his ties to Chinese entities. Tan has since held a meeting with Trump at the White House, which Trump called \u201cvery interesting,\u201d adding that Tan has \u201can amazing story.\u201d People familiar with the matter told Bloomberg that the current investment plan stems from those crunch talks.<\/p>\n

Previous to Trump\u2019s statement, four former directors of Intel published a commentary exclusive to Fortune<\/em>, saying the company was likely to retreat as America\u2019s chips champion. After the president\u2019s statement, they advocated for a separation of Intel\u2019s essential foundry business that\u2019s so core to national security.<\/p>\n

They later added that the spinoff could be capitalized by its customers and by the U.S. government\u2014and should be independent from the parent company.<\/p>\n

\u201cAn independent American-based leading-edge chip manufacturing firm\u00a0was the motivation for the Chips Act and remains important for national security and America\u2019s international competitiveness,\u201d they wrote in a statement to Fortune<\/em>.\u00a0<\/p>\n

Former Intel CEO Craig Barrett has also provided a commentary to Fortune<\/em> about how to save the company, calling Intel \u201ccash poor\u201d and unable to afford \u201cinvestments in the capacity needed in the future to replace [semiconductor rival] TSMC or even a reasonable fraction of TSMC capacity.\u201d Barrett added that Intel probably needs a cash infusion of roughly $40 billion to be competitive. \u201cRealistically that investment is 100% of the [CHIPS] Act capital grants so unlikely the [U.S. government] is the savior.\u201d Bloomberg subsequently reported<\/a> that the Trump administration was considering using funds from the CHIPS Act to at least partially fund the purchase of an equity stake in Intel, citing people familiar with the matter.<\/p>\n

The White House and Intel did not respond to Fortune<\/em>\u2019s requests for comment.<\/p>\n

For this story,\u00a0<\/em>Fortune\u00a0used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.\u00a0<\/em><\/p>\n<\/div>\n

Introducing the 2025 Fortune Global 500<\/strong>, the definitive ranking of the biggest companies in the world. Explore this year’s list.<\/div>\n\n","protected":false},"excerpt":{"rendered":"

In a potentially dramatic shift for corporate America and U.S. industrial policy, the Trump administration is actively considering a plan to buy a direct stake in Intel, one of the…<\/p>\n","protected":false},"author":734,"featured_media":5638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[6],"tags":[111,6906,6905,563,1305,314,6660,6903,6904,557,1544,30],"jetpack_publicize_connections":[],"yoast_head":"\nDays after Intel CEO meets with Trump, the federal government is reportedly negotiating a stake in the chips champion - Frisco Times<\/title>\n<meta name=\"description\" content=\"Trump has called Intel CEO Lip-Bu Tan both \u201chighly conflicted\u201d and possessing \u201can amazing story.\u201d\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/friscotimes.org\/?p=5637\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Days after Intel CEO meets with Trump, the federal government is reportedly negotiating a stake in the chips champion - 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