US Reported Nears 10% Intel Stake to Stabilize Chip Industry

The Trump administration is reportedly considering taking a 10% equity stake in Intel as part of efforts to support and stabilize the struggling American chipmaker. Treasury Secretary Scott Bessent clarified that the potential government investment would likely be a conversion of grants provided under the CHIPS Act and would not involve pressuring companies to buy Intel chips. Commerce Secretary Howard Lutnick emphasized that President Trump wants to secure equity stakes to ensure the American taxpayer benefits from the financial support, contrasting with the previous administration's approach of providing grants without returns. Intel, which has faced significant financial challenges including an $18.8 billion loss in 2024, recently received a $2 billion investment from SoftBank. The administration's move is also motivated by national security concerns, aiming to reduce dependence on Taiwan for semiconductor production. Intel has expressed commitment to supporting President Trump's technology and manufacturing initiatives but declined to comment on the equity stake rumors.