The Trump administration is reportedly considering converting part of Intel’s CHIPS Act funding into equity, potentially acquiring a 10% stake worth $10.5 billion, though it's unclear if previously disbursed funds would count toward the proposed arrangement
The U.S. government is exploring a significant investment in Intel Corporation that could see it become one of the semiconductor giant’s largest shareholders, according to officials familiar with ongoing discussions.
According to reports citing sources, the Donald Trump administration is considering converting a portion of the federal funding allocated to Intel under the CHIPS and Science Act into equity. If executed, the move could result in Washington acquiring as much as a 10% stake in the company — a position valued at approximately $10.5 billion based on Intel’s current market capitalization.
Intel has already been approved for up to $10.9 billion in federal grants to support domestic semiconductor manufacturing, both for commercial and defense purposes. So far, the company has received about $2.2 billion of that amount, with future disbursements tied to project milestones. Whether those funds will be included in any equity arrangement remains unclear.
A White House official, speaking on condition of anonymity due to the sensitive nature of the talks, confirmed the idea is under active review but stressed that no final decision has been made. Intel has not commented publicly on the matter.
Strategic shift in chip policy
The discussions come as the Trump administration seeks to tighten control over critical supply chains and bolster domestic chip production in the face of global geopolitical uncertainty. Analysts say a direct government stake in a major U.S. chipmaker would mark a significant shift in industrial policy and raise new questions about the federal role in corporate governance.
Market reaction has been mixed. Intel shares surged last week amid speculation about the deal, but fell by over 5% on Monday after initial reports of the talks surfaced. The stock had previously recorded its strongest weekly gain since February.
This would not be the first time the federal government has used equity as a strategic tool under the CHIPS Act. In July, the Department of Defense took a $400 million preferred equity stake in MP Materials, a U.S.-based rare earth producer, becoming its largest shareholder in the process.
Whether the Intel deal will follow a similar path remains to be seen. Sources indicate that other recipients of CHIPS Act funds may also be considered for equity-based arrangements, but no formal proposals have been made public.
