Trump administration plans to buy stake in Intel, says Bloomberg

According to sources, the deal would help strengthen the position of Intel’s planned plant in Ohio.

The company had previously promised to turn the site into the largest chip factory in the world, though the project has faced repeated delays. The size of the potential US government stake is not yet clear.

Sources said the plans stem from a meeting this week between Trump and Intel CEO Lip-Bu Tan. Details are still being worked out, but one source said the government would pay for the stake. Another source noted that the plans remain uncertain.

Intel declined to comment on the discussions. However, a company representative said Intel is "deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership."

"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," Intel said.

The White House did not immediately respond to a request for comment.

Bloomberg notes that any deal would bolster Intel’s financial position as the company cuts costs and jobs. It also implies that Tan would remain at the helm of the company.

One source said potential deals by the administration are likely being modeled on the MP Materials project. This involves equity investments, guaranteed purchases, loans, and private funding alongside public partnerships.

Many in the administration believe such tools give investors full confidence that the project is backed by the world’s most creditworthy institution while also protecting taxpayer funds.

Background

About a week ago, US President Donald Trump demanded the immediate resignation of Intel CEO Lip-Bu Tan. His statement followed a letter from a senator to the company president expressing concerns about Tan’s investments and ties to China.

Soon afterward, Trump said Tan would cooperate with the US government on addressing losses in the chipmaking business.