The Trump administration continues to meddle with semiconductor giant Intel, as new reports indicate the U.S. government is in discussions to take a direct stake in the company. According to Bloomberg, this potential deal would be structured to help Intel expand its U.S. manufacturing efforts, including its much-delayed Ohio chip factory.
This development comes less than a week after President Donald Trump insisted that Intel CEO Lip-Bu Tan resign due to perceived conflicts of interest. While Trump didn’t provide specific reasons for this demand, it followed Republican U.S. Sen. Tom Cotton’s letter to Intel’s board questioning Tan’s alleged ties to China.
Tan reportedly met with the Trump administration on August 11 to address the administration’s concerns and explore ways for the company to collaborate with the government. This meeting appears to have sparked the discussions about the U.S. government taking a direct stake in Intel.
“Intel is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership,” an Intel spokesperson said in a statement. “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.”
Strategic Implications for Semiconductor Industry
The potential government stake in Intel represents a significant shift in the semiconductor industry landscape. This move could provide Intel with the financial backing needed to accelerate its domestic manufacturing expansion, particularly for the delayed Ohio facility that has faced numerous setbacks.
Industry analysts suggest this development reflects the Trump administration’s broader strategy to reduce dependence on foreign semiconductor manufacturing, particularly from China and Taiwan. The government’s involvement could help Intel compete more effectively against rivals like AMD and NVIDIA while bolstering national security interests.
Political and Economic Considerations
The timing of these discussions is particularly noteworthy, occurring during an election year when both political parties are emphasizing domestic manufacturing and technological independence. The potential deal could serve as a model for future government-private sector partnerships in critical technology sectors.
However, questions remain about the structure and terms of any potential government stake, including the percentage of ownership, voting rights, and how this would affect Intel’s operations and decision-making processes. Regulatory approval would also be required for such a significant government investment in a private company.
Source: Bloomberg, TechCrunch | Published: August 14, 2025
