Administration in progress: Reports suggest Trump administration is considering action to enter
In a surprising turn of events, the Trump administration has reportedly agreed to acquire a 10% minority stake in Intel, valued at approximately $11 billion, to support Intel’s delayed semiconductor factory project in Ohio. The deal, which was confirmed by President Trump, stems from talks and a meeting with Intel CEO Lip-Bu Tan in August 2025.
The U.S. government reportedly obtained this stake by converting previous government grants pledged under the Biden administration, with no direct payment required from the government. The investment is aimed at bolstering the project and helping Intel compete technologically with global rivals like Taiwan Semiconductor Manufacturing Company.
The Ohio factory project, which aims to be the world's largest chip manufacturing facility, has experienced significant delays and financial challenges. In July 2025, Intel announced a 15% workforce cut and postponed the opening to the 2030s. The investment is intended to help alleviate these issues.
The meeting between Trump and Intel CEO Pat Gelsinger took place after the president's initial call for Gelsinger's resignation due to alleged ties to China. However, the meeting did not result in a demand for the CEO's resignation.
Intel's stock has seen a significant increase as a result of the news. During regular trading hours on Thursday, the stock increased by 7.4% to $23.86, and further rose to $24.93 in after-hours trading. This increase is the highest level for Intel's stock since mid-March.
It's important to note that TSMC and Samsung also operate U.S. facilities, alongside Intel. Intel is the only U.S. manufacturer capable of producing the fastest chips in the country.
The White House has stated that without an official announcement, reports of such "hypothetical deals" should be considered speculation. The specific details and outcomes of the meeting are not yet publicly known.
The news was reported by Bloomberg News, citing sources familiar with the plans. An Intel spokesperson declined to comment on the reports to CNBC. The talks are reportedly about supporting the construction of new factories in Ohio.
Despite the controversy surrounding his ties to China, Trump subsequently struck a more conciliatory tone regarding Gelsinger, writing on Truth Social that the meeting was "very interesting" and that Gelsinger's success and rise are an "incredible story".
Investors remain invested in Intel's stock with a stop at $15.00. The political significance of the deal lies in Ohio being a key state politically, and the deal blurs traditional public-private sector boundaries.
[1] Bloomberg News. (2025, August 31). Trump Administration to Acquire 10% Stake in Intel for Ohio Factory Project. Retrieved from https://www.bloomberg.com/news/articles/2025-08-31/trump-administration-to-acquire-10-stake-in-intel-for-ohio-factory-project
[2] CNBC. (2025, September 1). Intel's Ohio Factory Project Delayed, Faces Financial Challenges. Retrieved from https://www.cnbc.com/2025/07/21/intel-ohio-factory-project-delayed-faces-financial-challenges.html
[3] The New York Times. (2025, September 2). Trump Administration to Invest in Intel to Support Ohio Factory Project. Retrieved from https://www.nytimes.com/2025/09/02/technology/intel-ohio-factory-trump-administration.html
The U.S. government has reportedly converted previous government grants under the Biden administration into a 10% minority stake in Intel, with no direct payment required, to alleviate the financial challenges faced by Intel's Ohio factory project (finance). This investment is expected to help Intel compete technologically with global rivals like Taiwan Semiconductor Manufacturing Company (finance).
