Trump administration in talks to take stake in Intel amid Ohio factory delays

In a move that could reshape the US semiconductor landscape, the Trump administration is in discussions to acquire a stake in Intel Corp., Bloomberg reported on Thursday, citing people familiar with the matter. The potential deal is aimed at bolstering Intel’s long-delayed chipmaking hub in Ohio, a project once promised as the world’s largest semiconductor facility but now pushed back until the 2030s. The size of the possible government investment has not yet been determined, and talks remain fluid, according to the report.

Political and corporate stakes

The discussions follow a meeting this week between President Donald Trump and Intel CEO Lip-Bu Tan, whom Trump had criticised just days earlier over past ties to China. Bloomberg said that if the deal proceeds, it could secure Tan’s position at the helm of the struggling chipmaker while injecting much-needed capital into the firm.

Shares of Intel surged as much as 8.9 per cent on Thursday, closing 7.4 per cent higher at $23.86 and adding a further 4 per cent in after-hours trading. The company declined to comment directly on the talks but reaffirmed its commitment to “supporting President Trump’s efforts to strengthen US technology and manufacturing leadership.”

Government intervention in industry

The proposal would mark the latest example of direct government involvement in a strategic industry under Trump. Similar interventions include a 15 per cent cut of certain semiconductor sales to China, a “golden share” in United States Steel Corp., and a $400 million Pentagon equity stake in rare-earth producer MP Materials Corp.

Bloomberg noted that such moves are part of a broader strategy to back “domestic champions” in sectors deemed vital for national security, particularly in competition with China.

Intel’s uphill battle

Once a pioneer in chipmaking, Intel has seen its market share and technological lead erode in recent years. The Ohio expansion, originally pitched as part of a turnaround plan under former CEO Pat Gelsinger, has been repeatedly delayed due to financial strains.

Intel had been expected to benefit heavily from the 2022 Chips and Science Act, but with the programme’s future uncertain, the administration has floated alternative strategies — including a potential joint venture with Taiwan Semiconductor Manufacturing Co., which TSMC has declined.

Ohio’s political significance could also play into the talks. Trump has carried the state in his past three elections, and with a Senate race looming in 2026, the region remains a focal point for Republicans.

(With inputs from the agencies)