Talks with Trump administration lift shares
Intel’s shares rose 7% on Thursday after Bloomberg reported that the Trump administration is in discussions to acquire a stake in the company. The move would support Intel’s efforts to expand its U.S.-based chip manufacturing capabilities, particularly through factory projects in Ohio. Intel remains the only U.S. firm capable of producing the most advanced chips domestically, although Taiwan Semiconductor Manufacturing Company and Samsung also operate factories in the United States.
Leadership under scrutiny
The talks follow a meeting earlier this week between Intel CEO Lip-Bu Tan and President Donald Trump. The meeting occurred amid calls from the president for Tan’s resignation over alleged ties to China, allegations that Intel has firmly rejected. The company stated Tan is committed to advancing U.S. national and economic security interests, but declined to comment on speculation regarding the government taking an ownership stake.
Foundry challenges and strategic cuts
Tan, who took the helm earlier this year, inherited a company struggling to gain traction in artificial intelligence chips while heavily investing in its foundry business. The venture, which manufactures chips for other companies, has yet to secure a major client. In July, Tan announced the cancellation of planned manufacturing sites in Germany and Poland and a slowdown in Ohio development, emphasizing tighter spending controls.
Government’s expanding industrial role
Under Trump, Washington has moved to take direct stakes in strategic industries. Recent actions include acquiring 15% of certain Nvidia and AMD chip sales to China, a $400 million Pentagon equity stake in rare-earth miner MP Materials, and a “golden share” in U.S. Steel. For Intel, a government investment could accelerate its foundry expansion, enhance supply chain security, and restore confidence among potential customers. Despite last year’s 60% stock decline, Intel shares have gained 19% in 2025.
