US May Become Intel’s Biggest Shareholder With $10.5B Stake: Report

The Trump administration is considering acquiring about a 10% stake in Intel Corp., according to a White House official and people familiar with the matter.

If finalized, the US government would become the largest shareholder of the struggling chipmaker, a rare move highlighting Washington’s intensifying focus on semiconductor independence.

At current market value, Intel’s 10% stake would be worth around $10.5 billion, nearly equal to the $10.9 billion in Chips and Science Act grants that Intel has been allotted for commercial and military production. Officials say the investment under discussion could involve converting grant funds into equity.

Intel share price today 
News of the potential government stake first surfaced in a Bloomberg report on Monday, triggering market volatility. Intel shares, which had soared 23% last week for their best performance since February, dropped as much as 5.5% after reports of the talks emerged.

A White House spokesperson sought to temper speculation. “No deal is official until it’s announced by the administration,” spokesman Kush Desai said, declining to discuss specifics. Intel, meanwhile, did not immediately respond to requests for comment.

Sources also indicated that the White House has floated the idea of converting other Chips Act awards into equity stakes. However, it remains unclear whether this proposal has gained traction across the administration or been discussed with other recipients.

The move would mirror a recent precedent: the Defense Department’s $400 million preferred equity stake in MP Materials Corp., a little-known U.S. rare-earth producer. That deal made the Pentagon the company’s largest shareholder, underscoring a new willingness by Washington to take direct stakes in strategically critical industries.

Intel’s Chips Act Funding Timeline
Intel has already received $2.2 billion in Chips Act disbursements as of January, though questions remain over whether this initial tranche would be counted toward a possible equity stake. The company’s funding under the act was originally structured to be disbursed over time as project milestones were met.
With President Donald Trump in office, the timeline of future payouts — and whether they would come in the form of equity, remains uncertain.

A Strategic Shift in US Industrial Policy
The potential Intel deal marks a dramatic escalation in the U.S. government’s semiconductor policy. By taking a direct shareholder role, Washington would not only provide financial support but also gain a stronger say in the future of America’s most critical chipmaker at a time of geopolitical competition with China and heightened demand for secure supply chains.

For now, discussions are ongoing, and no final decision has been reached. But if approved, the Trump administration’s move could represent the largest government stake in a US technology company in decades, reshaping the balance of power between Washington and Silicon Valley.

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(With Inputs From Bloomberg)