Washington , US- August 15, 2025

In a noticeable and unusual move that blurs the line between state and industry, the U.S. government is reportedly in talks to take a stake in Intel Corp., a struggling chipmaker. The discussions, which come just days after President Donald Trump publicly called for the company’s CEO to resign, are aimed at securing domestic semiconductor production, which is considered a matter of national security. The potential investment would help shore up Intel’s long-delayed factory hub in Ohio.

The talks were spurred by a recent meeting between President Trump and Intel CEO Lip-Bu Tan. While the White House and Intel have not confirmed the reports, a White House spokesperson, Kush Desai, stated that “discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration.” Intel, for its part, declined to comment directly on the talks but emphasized its commitment to supporting the President’s efforts to strengthen U.S. technology and manufacturing leadership. News of the potential government intervention caused Intel’s stock to surge by over 7% in a single day.

Key Headlines

 * Government-Industry Blur: The potential deal signifies a rare and deeper involvement by the U.S. government in a private tech company, moving beyond traditional subsidies to direct industrial policy.

 * Ohio Factory at Risk: The investment is intended to accelerate the construction of Intel’s massive Ohio manufacturing facility, which has faced repeated delays.

 * National Security Concern: The U.S. government views a strong domestic semiconductor industry as a vital national security interest, especially given global supply chain vulnerabilities and technological competition with China.

 * CEO’s Prior Conflict: The discussions follow a period of public friction, as President Trump previously demanded the resignation of Intel’s CEO over his past investments in Chinese tech companies.

 * Stock Market Reaction: Intel’s stock experienced a significant jump in value after reports of the potential government stake, reflecting investor confidence that such a deal would provide a much-needed cash infusion.

The Broader Context of an Unprecedented Move

The U.S. government’s consideration of an equity stake in Intel is a striking departure from its historical approach to the private sector. While the government has provided financial assistance to private companies in the past, a direct ownership stake is an unusual step. This move is indicative of the administration’s broader strategy to use direct intervention to support industries deemed critical to national security, such as semiconductors and rare earths.

Intel, once the undisputed leader in chip manufacturing, has fallen on hard times, losing ground to rivals like Taiwan’s TSMC in the production of advanced chips. The company’s stock market value has plummeted, and it has been cutting costs and jobs in an effort to turn its fortunes around. The capital injection from a government stake would not only provide a financial boost but could also help the company regain its footing in the highly competitive and capital-intensive semiconductor industry.

The political implications of the deal are also significant. With the Ohio factory located in a politically central state, the project carries heavy weight, especially with the upcoming 2026 Senate race. The move aligns with the administration’s “America First” policy, aiming to boost domestic manufacturing and create jobs. Analysts suggest that such a deal could also serve as a model for future government investments in other critical industries. The details of the potential stake, including its size and cost, are still being worked out, and it remains unclear when or if a formal deal will be announced.