Report: Trump considering federal investment in Intel to help Ohio plant

NEW ALBANY, Ohio (WCMH) -- Intel stock is up 7% after Bloomberg reported President Donald Trump's administration is considering having the federal government take a stake in the company.

According to the Bloomberg report, which cited people familiar with the plan, the deal would help protect Intel's Ohio facility. The report said plans are still in the works and stem from a meeting between Trump and Intel CEO Lip-Bu Tan on Monday. The White House did not confirm the plans.

“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” White House Spokesman Kush Desai told NBC4.

Intel also declined to comment, releasing the following statement: “Intel is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership. 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.”

Any agreement would help Intel, which is laying off 15% of its workforce and reorienting to fight ongoing financial difficulties, and likely Tan himself. Tan's meeting with Trump came after calls from senators and the president to investigate Tan's alleged ties to the Chinese military or to have Tan resign.

Sen. Tom Cotton (R-Ark.), a Trump ally, was the first to call for a review of Tan's ties to China and has not publicly commented on rumors of a deal as of publication. A deal between Tan and the U.S. government indicates Tan may be under decreased political scrutiny from the White House. After the meeting, Intel said Tan's conversation with Trump was "candid and constructive."

"We appreciate the President’s strong leadership to advance these critical priorities and look forward to working closely with him and his administration as we restore this great American company," Intel said after Monday's meeting.

According to Bloomberg's report, the federal investment would specifically help Ohio's plant. Once the face of domestic semiconductor manufacturing, Intel's $28 billion Ohio One plant is far from its original opening goal of 2025, now aiming for 2032. In late July, Intel announced it was further slowing construction on Ohio's facility as its manufacturing division continues to be unprofitable. The company confirmed that slowed efforts do not mean construction will stop entirely.

Intel was already promised federal support through the bipartisan CHIPS Act, which pledged $7.8 billion to the chipmaker last November. As of July, Intel reported it had not received new CHIPS Act funding since January.

Trump has pushed for more domestic semiconductor manufacturing, threatening 100% tariffs on foreign semiconductors. Most semiconductors -- small, complex chips that power complex technology like computers -- are manufactured in Taiwan, with the U.S. International Trade Commission estimating 44.2% of all American semiconductors originate there. The commission said 92% of the world's most advanced chipmaking capacity is located in Taiwan.

Federal support for Intel, especially Ohio's plant, could help the U.S. become more competitive in the semiconductor industry. Intel Ohio One plans to encompass two "leading-edge" semiconductor fabs to help the U.S. build advanced chips.

Ohioan Vice President J.D. Vance and Intel did not immediately respond to NBC4's request for comment. Senator John Husted declined to comment at this time.