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The U.S. Is Discussing Taking a Stake in Intel

Author: Robbie Whelan, Lauren Thomas, Amrith Ramkumar, Source: WSJ:
August 15, 2025 at 07:36
The Intel talks are in the early stages. PHOTO: JOHN G. MABANGLO/EPA/SHUTTERSTOCK
The Intel talks are in the early stages. PHOTO: JOHN G. MABANGLO/EPA/SHUTTERSTOCK

The deal talks follow President Trump’s public call for the replacement of CEO Lip-Bu Tan over his ties to Chinese businesses.


Intel INTC 7.38%increase; green up pointing triangle and the Trump administration are discussing the possibility of the U.S. government taking a financial stake in the troubled chip maker, according to people familiar with the matter, in a deal that could advance the president’s America-first manufacturing agenda while relieving political pressure on the company’s beleaguered chief executive.

President Trump discussed the idea—which is still in early stages and could fall apart—during a meeting Monday at the White House with Intel CEO Lip-Bu Tan, according to some of the people.

Details of how such an arrangement would be structured are still being hashed out, the people said. News of the discussions was reported earlier by Bloomberg. 

Intel shares ended the day up more than 7% and rose further after hours.

Last week, Trump called for Tan to step down as head of Intel, writing on his Truth Social social-media platform that the CEO was “highly conflicted,” a reference to Tan’s web of investments in Chinese technology companies.

The administration has been seeking ways to increase American market share in semiconductor manufacturing. Officials have described Intel as the domestic company with the best chance of taking on Taiwan Semiconductor Manufacturing Co., the dominant player in chip fabrication. Tech companies across the board have been rushing to boost or emphasize their U.S. investments to win favor with Trump and get favorable policies.

“This administration knows how much leverage they have over the tech industry,” said Jim Secreto, former deputy chief of staff in the Commerce Department during the Biden administration.

A deal would be the latest of Trump’s personal interventions in the U.S. private sector. He recently secured a commitment by Nvidia and Advanced Micro Devices to pay the government 15% of their sales in China in exchange for export licenses. In Nippon Steel’stakeover of U.S. Steel, he received a “golden share” giving him sway over how the company operates.

It is unusual, but not unprecedented, for the government to consider taking stakes in companies that aren’t in financial distress. In the first Trump administration, Attorney General William Barr suggested the U.S. take stakes in telecom companies that are rivals to China’s Huawei, though the plan didn’t go forward.

Some industry analysts think Intel might eventually need government assistance if Tan and other executives can’t turn around the business. 

“Depending on how it’s structured, such a stake could give the U.S. government influence over and insights into Intel’s activities, especially when it comes to China, in a way that regulations or subsidies likely wouldn’t,” said Mira Ricardel, who served as undersecretary of commerce for industry and security in the first Trump administration. 

Analysts have said it could be difficult for Intel to increase its U.S. capital spending given its business challenges. The company’s loss widened to $2.9 billion in the second quarter. Government funding alone also wouldn’t address all of Intel’s problems, which investors say include an outdated business model and a product lineup poorly suited to applications in artificial intelligence. 

“Intel is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership,” the company said in a statement, adding that it doesn’t comment on rumors. 

Before coming into Trump’s crosshairs, Tan was already under fire from Sen. Tom Cotton (R., Ark.) for his connections to China through Tan’s venture capital fund, Walden International, and through technology firm Cadence Design Systems, where Tan served as CEO from 2009 until 2021. 

In late July, Cadence pleaded guilty to two charges of violating U.S. export restrictions and agreed to pay $140 million in fines. During Tan’s tenure as CEO, Cadence sold software and other technology to China’s National Defense University, a customer banned under U.S. export rules.

Some viewed Trump’s call for Tan to resign as an olive branch to national-security-minded Republicans who were unhappy with recent steps by Trump to allow American companies to sell sensitive technology to China.

Intel has struggled to compete with rivals such as Nvidia, AMD and TSMC on both the design and fabrication of the advanced chips powering the AI boom. The company’s share price has fallen by more than half since the start of last year.

Intel’s board fired previous CEO Pat Gelsinger in late 2024, a sign that directors and investors had lost confidence in his strategy of aggressively expanding the manufacturing side of the business. The board appointed Tan, who previously had served as a director, in March. 

Intel was slated to receive about $8 billion from the 2022 Chips and Science Act for a plant in Ohio that has been delayed for several years. The setbacks have drawn condemnation from many lawmakers, including Sen. Bernie Moreno (R., Ohio), who has called for an investigation into claims the company made to secure the government funding. The Trump administration has been making changes to the chips program and asking companies to increase the size of their investments. 

In late July, Intel announced it would lay off 15% of its workforce by the end of this year and further delay the opening of the Ohio plant to beyond 2030. 

Write to Robbie Whelan at robbie.whelan@wsj.com, Lauren Thomas at lauren.thomas@wsj.com and Amrith Ramkumar at amrith.ramkumar@wsj.com

Appeared in the August 15, 2025, print edition as 'U.S. Weighs Possibility Of Taking Intel Stake'.

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