US in talks over 10% Intel stake, White House confirms

By Admin

20 Aug, 2025

The White House confirmed on Tuesday that the Trump administration is negotiating a deal that could see the US government take a 10% equity stake in Intel, one of America’s leading semiconductor companies. The move, officials say, is designed to balance national security priorities with economic competitiveness in a rapidly evolving chip market.

Government Grants for Equity

White House press secretary Karoline Leavitt stated that the president’s focus is to “put America’s needs first, both from a national security and economic perspective.” According to US Commerce Secretary Howard Lutnick, the proposal could involve swapping government grants for Intel shares, marking an unusual but strategic shift in how Washington supports critical industries.

“We should get an equity stake for our money,” Lutnick told CNBC. “Instead of just giving grants away, we’ll get equity in return.”

Intel’s Struggles in the AI Era

The deal comes at a pivotal moment for Intel. Once the undisputed leader in chip manufacturing, the company has fallen behind global competitors such as Nvidia, Samsung, and TSMC. The AI chip market in particular has highlighted Intel’s weaknesses, with Nvidia dominating sales and market value. A fresh infusion of government support paired with private investment could help Intel regain momentum.

Just this week, Japanese investment giant SoftBank announced a $2 billion stake in Intel, which sent the company’s shares soaring nearly 7% in New York trading. Analysts have interpreted the move as a strong vote of confidence in Intel’s turnaround strategy.

Building in Ohio

At the heart of the potential deal is Intel’s ambitious plan to build a flagship manufacturing hub in Ohio. Initially announced under the Biden administration’s grant programme, the project has become central to America’s efforts to boost domestic semiconductor production and reduce dependence on foreign supply chains.

Last week, Intel emphasized its support for US manufacturing policy, saying it was “deeply committed to supporting President Trump’s efforts” to strengthen domestic technology infrastructure.

Expert Reactions

Analysts remain divided on the risks and rewards of government equity in private companies. Vincent Fernando of Zero One consultancy noted that Intel plays a “key role in producing semiconductors in the US” and argued that Washington’s involvement makes sense to secure critical industries.

Others remain cautious. Dan Sheehan of Telos Wealth Advisors warned that political interference could complicate Intel’s turnaround. “Injecting government equity into that environment risks blurring the line between commercial discipline and political objectives,” he said.

A Broader Chip Industry Crackdown

The developments come as the White House intensifies scrutiny of the US chip industry. Just last week, Nvidia and AMD agreed to pay 15% of their Chinese revenues in exchange for export licences to China a highly unusual step reflecting Washington’s determination to protect national interests in technology.

Conclusion

The prospect of the US government owning part of Intel underscores just how central semiconductors have become to both national security and economic policy. While the deal could provide Intel with much-needed capital and stability, it also raises questions about political influence in corporate strategy. If finalized, the arrangement would mark a new chapter in the relationship between Washington and Silicon Valley, signaling a shift toward deeper government involvement in America’s most critical technologies.