US Government Considers Taking Stake in Intel – 10 Percent Share in Chip Company in Preparation

US government plans a 10 percent stake in Intel to convert subsidies into equity and strategically secure semiconductor production.

8/21/2025, 8:00 AM
Intel
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Eulerpool News Aug 21, 2025, 8:00 AM

The US government is on the verge of acquiring a roughly 10 percent stake in the troubled chip company Intel.

Spokeswoman Karoline Leavitt spoke of an "innovative idea that has never existed before." The goal is to strengthen domestic semiconductor production while directly involving taxpayers in the value of state subsidies. President Donald Trump is urging that the USA bring back their security-relevant supply chains and at the same time achieve a financial benefit.

Intel has so far drawn around $2.2 billion from the total $10.9 billion subsidy package. The funds are flowing into factory projects in Arizona, Ohio, New Mexico, and Oregon. According to Lutnick, the total amount roughly corresponds to a 10 percent stake in the technology company, whose market capitalization is currently around $100 billion. Washington does not intend to acquire voting rights or a say with the participation.

Intel's stock rose by more than seven percent on Tuesday, driven by SoftBank's announcement of a $2 billion investment. According to insiders, its founder Masayoshi Son has even held talks with Intel CEO Lip-Bu Tan about a potential purchase of the loss-making manufacturing business.

Intel has been struggling for years to keep up with the world's leading semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC), in semiconductor production. CEO Tan recently warned that without major orders for contract manufacturing, a withdrawal from high-end production could threaten.

Lutnick referred in conversation with CNBC to the geopolitical volatility: "We cannot rely on Taiwan, which is only 80 miles from China.

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