U.S. Government Considers Taking Equity Stake in Intel to Boost “America First” Chip Strategy

According to sources, the Trump administration is in discussions with Intel regarding a potential equity investment, with the U.S. government reportedly considering a direct capital injection to purchase shares and support Intel’s plans to establish a large-scale manufacturing campus in Ohio. This move would not only strengthen Intel’s financial position but also underscore the administration’s commitment to its “America First” industrial strategy.

The talks stem from a meeting earlier this week between President Trump and Intel CEO Patrick Gelsinger. Should the plan come to fruition, it could help revive Intel’s long-delayed Ohio expansion project, originally intended to host the world’s largest semiconductor fabrication facility—a project that faced repeated delays and was slowed again in July of this year.

Market observers are also watching closely to see whether a government stake would secure Gelsinger’s continued leadership at Intel, enabling him to press ahead with financial restructuring and strategic realignment.

Following the news, Intel’s share price jumped 8.9% intraday before closing with a 7.4% gain at $23.86, lifting its market capitalization back to $104.4 billion.

The White House spokesperson cautioned that any transaction not officially announced remains speculative. Intel reiterated its support for the administration’s efforts to advance U.S. technology and manufacturing leadership but declined to comment on market rumors.

In recent years, Intel has faced eroding technological leadership and declining market share, while undertaking layoffs and cost-cutting measures. Former CEO Pat Gelsinger had positioned the Ohio expansion as a central pillar of Intel’s turnaround strategy, but funding constraints pushed timelines into the 2030s. The U.S. government had previously floated the idea of co-operating with TSMC on the site, but TSMC CEO C.C. Wei stated the company would not pursue such a plan.

Analysts view the potential equity investment as both a financial lifeline for Intel and part of a broader U.S. push to strengthen domestic semiconductor manufacturing. The Trump administration has a history of direct industry interventions, including restricting chip exports to China, assigning “golden shares” in certain foreign acquisitions, and taking a stake in U.S. rare earth producer MP Materials.

If modeled after the MP Materials deal, the transaction could blend equity investment, government contracts, loans, and private financing, while leveraging official involvement to boost market confidence—potentially becoming a flagship example of the “national team” strategy in the U.S. semiconductor sector.

Reuters described the proposal as a rare and timely lifeline for Intel amid its market value and profit decline, while the Financial Times noted investor optimism about government involvement. The Wall Street Journal was more direct, suggesting that if the investment materializes, the U.S. government will gain greater influence over Intel’s strategic direction and extend the “America First” policy into the semiconductor arena.

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