Business

U.S. Government Could Reportedly Become Intel’s Top Shareholder Under New Proposal

By Jake Beardslee · August 19, 2025

Intel headquarters at 2200 Mission College Boulevard in Santa Clara, California. Photographed by user Coolcaesar on July 23, 2023. Coolcaesar, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons

The Trump administration is weighing whether to take a 10% ownership stake in Intel, according to a Bloomberg report, a move that could make the U.S. government the chipmaker’s largest shareholder.

Officials are discussing converting part or all of Intel’s $10.9 billion in grants from the 2022 CHIPS and Science Act into equity, the report said, citing a White House official and other people familiar with the matter. At Intel’s current market value, a 10% stake would be worth around $10.4 billion.

Intel has been the largest beneficiary of the CHIPS Act, which was passed with bipartisan support during the Biden administration to bolster domestic semiconductor manufacturing. The company received $7.9 billion to support U.S. investment projects and $3 billion for chip production linked to national security.

Investors initially welcomed the idea of a government investment, sending Intel shares up nearly 9% on Aug. 14. However, uncertainty remains about whether the proposal has significant backing inside the administration or if discussions have advanced with affected companies.

Some analysts argue government intervention is necessary for Intel’s survival and U.S. national security, while others question whether funding alone can reverse the company’s long-standing struggles in advanced chipmaking.

The report comes as Intel faces mounting challenges in competing with global rivals in the artificial intelligence era and after it failed to secure major clients for its manufacturing business. The company, once a dominant player, has lost ground to competitors like TSMC and Samsung.

SoftBank added to the intrigue by announcing a $2 billion investment in Intel on Tuesday, making it the chipmaker’s fifth-largest shareholder. Masayoshi Son, the company’s chairman and CEO, said: “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

Intel CEO Lip-Bu Tan, appointed in March 2025, recently met with President Trump at the White House. Trump, who had previously called for Tan’s ouster due to his past ties to China, later said Tan had “an amazing story.” It remains unclear whether the potential government stake was discussed in that meeting.