Shares of Intel Corp. jumped more than 7% Thursday after reports surfaced that the Trump administration is in talks to acquire a stake in the struggling American semiconductor giant.
According to Bloomberg, the potential investment would bolster Intel’s plan to build a large-scale semiconductor manufacturing hub in Ohio. The report noted that the size and terms of the proposed stake remain unclear.
White House spokesperson Kush Desai said, “Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration.”
The report comes just days after a meeting between Intel chief executive Lip-Bu Tan and President Donald Trump. The president had previously accused Tan of being “highly conflicted” because of his prior ties to China.
Bloomberg said Intel declined to comment on the reported talks but reiterated that it is “deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership.”
Analysts say the deal could serve as a financial lifeline for Intel, which has been losing ground in the booming AI chip market to competitors such as Nvidia. Intel’s market value has fallen by more than half since 2020, now standing at about $104 billion.
“This move would be a ‘lifeline’ for Intel, offering the company funding and government support,” said David Nicholson, a tech analyst at The Futurum Group. He added that such an arrangement would signal an increasing “intertwining” of government and private enterprise in the United States, a trend seen in countries like China.
Earlier this week, Nvidia and AMD agreed to pay the U.S. government 15% of revenues from China sales, another example of the administration’s growing intervention in private industry.
“Some folks will think that this is unfair that Intel is being propped up, but most will agree that it is strategically vital for the U.S.,” Nicholson said.
Intel’s proposed Ohio plant—central to the reported talks—was initially envisioned as the world’s largest chipmaking facility. However, the project has faced repeated delays.
Tech analyst Austin Lyons noted that direct government support for a single company is rare, but Intel may be a “special case” given its role in securing America’s semiconductor dominance. “Intel is the U.S.’s best shot at competing with TSMC and Samsung,” Lyons said. “The Ohio plant would ensure high-end chips are produced domestically.”
Tan, an American venture capitalist who took over as CEO in March, has been focused on stabilizing Intel’s finances and regaining ground in the AI semiconductor race. Last week, Trump publicly called for Tan’s resignation, citing alleged investments linked to Chinese military-affiliated firms—allegations Tan has not addressed publicly.
