U.S. government may become largest Intel shareholder

August 19, 2025 (MLN): The Trump administration was reported to have discussed taking a 10% stake in Intel, according to a Bloomberg report on Tuesday, in a deal that could make the U.S. government the chipmaker’s largest stakeholder.

As part of a potential arrangement, officials are also considering converting some or all of Intel’s $10.9 billion in grants from the 2022 U.S. CHIPS and Science Act into equity in the company, the report said, citing a White House official and other people familiar with the matter.

Intel has received $7.9bn for commercial manufacturing and $3bn for national security projects.

At the company’s current market value, a 10% stake would be worth about $10.4bn.

The report noted it remains unclear whether the idea has gained traction within the administration or if officials have approached affected companies.

The exact size of the potential stake is also in flux, and neither Intel nor the White House immediately responded to CNBC’s queries.

Intel, once dominant in U.S. chipmaking, has lost ground to global rivals in advanced manufacturing.

Reviving the company has become a Washington priority, with reports of a possible government stake surfacing last week.

The 2022 CHIPS Act, passed under the Biden administration, allocated $39bn in grants to bolster American semiconductor projects, including funding for TSMC, Samsung, Nvidia, Micron, and GlobalFoundries. Intel has been its largest recipient.

Although President Donald Trump has supported the goals of the CHIPS Act, he has criticized the bill and earlier this year called for its repeal.

Republican lawmakers have not acted on that demand, while Commerce Secretary Howard Lutnick said in June the administration was renegotiating some of the grants.

Converting Intel’s CHIPS Act funds into equity could reduce the overall capital infusion but would align with the administration’s push to build government-backed national champions in strategic industries.

Intel continues to struggle in the artificial intelligence boom and has yet to secure major customers for its manufacturing business.

Some analysts say government support is essential for U.S. national security, while others argue Intel’s challenges go beyond funding.

Trump could also use tariffs and regulation to indirectly support the company, as CNBC reported.

Meanwhile, SoftBank announced a $2bn investment in Intel on Tuesday, equal to about 2% of the company, making it the fifth-largest shareholder.

SoftBank Chairman and CEO Masayoshi Son said the move reflects confidence in Intel’s role in expanding U.S. semiconductor supply.

News of government interest in Intel previously drove shares up nearly 9% on Aug. 14.

Shares dipped over 3% Monday on the Bloomberg report but rebounded by more than 5% in overnight Robinhood trading following SoftBank’s investment.

Intel CEO Lip-Bu Tan, appointed in March 2025, met President Trump at the White House last week. Trump, who had earlier called for Tan’s ouster over his past ties to China, later praised him as having “an amazing story.”

It remains unclear if a possible government stake was discussed during the meeting.

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