Trump administration explores US stake in Intel in push for chip dominance: report
The Trump administration is in talks with Intel to inject federal capital into the company, according to people familiar with the discussions. The aim is to expedite U.S. semiconductor production and reinvigorate Intel’s long-delayed Ohio factory, Bloomberg reported.
"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," an Intel spokesperson told FOX Business.
The talks gained momentum after a White House meeting between President Trump and Intel CEO Lip-Bu Tan, two people familiar with the matter told Bloomberg.
Though no terms are confirmed, the move would mark a rare instance of direct U.S. government investment in a private tech firm, according to the report.
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Semiconductors power everything from smartphones to defense systems, and Intel’s struggle is a national security concern, industry analysts say. A federal stake would signal a shift from traditional subsidies toward direct industrial policy, policy experts have noted.
Patrick Moorhead, founder of Moor Insights & Strategy, told FOX Business the administration’s approach fits with other recent moves.
"We’ve already seen an investment in MP Materials, and the administration has asked both Nvidia and AMD for a 15% cut of revenue from GPUs shipped to China," Moorhead said.
"Given the national security implications of having a domestic foundry and intellectual property to drive leading-edge chips, it would not surprise me if one of the options on the table is an investment in Intel. The administration could also follow through on semiconductor tariffs that would provide an even greater incentive for chip designers like Nvidia to do business with Intel."
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The talks come less than a week after Trump publicly called for Tan’s resignation over his past business ties.
CBS News MoneyWatch reported that Sen. Tom Cotton, R-Ark., sent a letter to Intel’s board raising concerns about Tan’s investments in semiconductor firms reportedly linked to the Chinese Communist Party and the Chinese military.
"The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," the president wrote on his platform.
Ohio, home to Intel’s proposed factory, is politically central. Trump won the Buckeye State in all three of his presidential runs, and it’s the home state of Vice President JD Vance, election records show. With the 2026 Senate race heating up, this project carries heavy political weight, political observers say.
Talks remain in the early stages, and details are still fluid, according to people briefed on the matter. Political strategy may influence whether an announcement comes before or after the 2026 election, sources told Bloomberg.
The White House has not yet responded to FOX Business’ request for comment.