The US government is considering a plan to buy a direct stake in Intel, one of the world’s largest and most strategically important chipmakers, amid its struggles to compete with global leaders like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung. The move would mark a significant departure from the Trump administration’s hands-off approach to federal support for chipmaking.
Intel’s planned mega-plant in Ohio has faced repeated delays due to competition from these Asian giants. The company has lost 60% of its stock value in 2024, making it the sharpest drop in its history. Intel’s new CEO, Lip-Bu Tan, has been criticized for his ties to Chinese entities and has scaled back ambitions for the Ohio plant.
The Trump administration sees this investment as crucial for strengthening US technological independence and national security. The company’s foundry business is seen as core to these goals, with critics arguing that a direct equity stake would be essential for Intel’s survival. Former Intel CEO Craig Barrett has called for a cash infusion of around $40 billion to make the company competitive.
The plan to invest in Intel could use funds from the CHIPS Act, which allocated grants and subsidies for chipmaking companies. The White House and Intel have declined to comment on the proposal.
Source: https://fortune.com/2025/08/15/intel-trump-white-house-acquisition-stake