Trump Administration Considers Buying 10% Stake In Intel

According to Bloomberg, the Trump administration is in talks to acquire about a 10% stake in Intel, a move that could make the United States the largest shareholder of the struggling chip manufacturer.

Image source: Intel

The Trump administration plans to convert the funding under the U.S. Chips and Science Act into equity, and the plan is currently under review. Meanwhile, SoftBank Group Corp. unexpectedly announced a bet on Intel's revival, agreeing to acquire a portion of the company's shares for $2 billion.

The U.S. government and this Japanese technology group both have confidence in Intel's turnaround potential, though they may value different business segments. For the Trump administration, the revival of Intel's manufacturing capabilities helps create jobs and garner voter support; for SoftBank Group, Intel's chip design business attracts them with its prospects for high profit margins.

According to informed sources, the U.S. federal government is considering a potential investment in Intel by converting part or all of the funding the company receives from the CHIPS Act into equity. Intel was originally set to receive a total of $10.9 billion in such funding for the production of commercial and military chips; under the CHIPS Act introduced in 2022, the company can also apply for loans of up to $11 billion.

The grant was originally planned to be distributed gradually after Intel reached project milestones, and its scale could roughly cover the funds needed for the target shareholding. Based on Intel's current market value, the value of a 10% stake is approximately $10.5 billion. According to informed sources, the specific percentage of shareholding and whether the White House will advance this plan are still undetermined.

White House spokesperson Kush Desai declined to comment on the details of the negotiations, stating only that any deal would not be official until formally announced by the Trump administration. The U.S. Department of Commerce, which is responsible for overseeing the CHIPS Act, also declined to comment. Intel has yet to respond to a request for comment.

SoftBank Group announced plans to subscribe to new shares issued by Intel, a move seen as an important signal that the outside world is optimistic about Intel's recovery potential. It is also a key step for SoftBank Group's founder Masayoshi Son to drive strategic expansion by riding the wave of artificial intelligence investment.

Investors initially welcomed the news of the Trump administration taking a stake in Intel, driving Intel's stock price to its biggest weekly gain since February. On August 18, after Bloomberg reported the potential size of the U.S. government's stake, Intel's stock price fell by 3.7%, but it later rebounded due to news of a SoftBank Group transaction, while SoftBank Group's stock price in the Tokyo market fell by 4%.