Stocks of popular chipmaker Intel rose 7% on Thursday as the US seeks to bolster domestic production of advanced semiconductors. The stocks upticked after a Bloomberg report revealed that the Trump administration is in talks with the chipmaker to acquire a stake in the company.
Trump Government To Invest In Intel
Intel remains the only US company capable of producing the fastest chips domestically, though rivals such as Taiwan’s TSMC and South Korea’s Samsung also operate factories in the United States. President Donald Trump has repeatedly called for more high-tech manufacturing to take place within the country.
According to the report, a government investment could help finance Intel’s ongoing construction of factories in Ohio.
Intel CEO Lip-Bu Tan With President Donald Trump
The discussions follow a recent meeting between Intel CEO Lip-Bu Tan and President Trump at the White House. The visit came shortly after Trump called for Tan’s resignation over alleged ties to China, allegations Intel has rejected.
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At the time, Intel said Tan is “deeply committed to advancing U.S. national and economic security interests.” On Thursday, an Intel spokesperson declined to comment on the reported negotiations.
“We look forward to continuing our work with the Trump Administration to advance these shared priorities, but we are not going to comment on rumors or speculation,” the spokesperson stated.
Intel Making Strategic Shifts
Tan assumed the CEO role earlier this year after Intel struggled to capture significant market share in artificial intelligence chips. During the same period, the company has invested heavily in expanding its foundry business, which manufactures chips for third-party clients.
However, Intel’s foundry unit has yet to secure a major customer, something analysts say would be critical for justifying new factory investments and attracting other chip companies to consider Intel’s manufacturing services.
In July, Tan announced that Intel was cancelling planned manufacturing sites in Germany and Poland, slowing development in Ohio, and tightening spending oversight.
Trump Government Investing in Tech Companies
The potential Intel investment reflects the Trump administration’s growing involvement in key industries. Last week, the government announced plans to claim 15% of certain Nvidia and AMD chip sales to China. The Pentagon also purchased a $400 million equity stake in rare-earth miner MP Materials and acquired a “golden share” in U.S. Steel as part of Nippon Steel’s acquisition of the American steelmaker.
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
