The United States government is reportedly in discussions to acquire a stake in Intel Corporation, a move that signifies a significant evolution in industrial policy and aims to bolster domestic semiconductor manufacturing capabilities. This sector is increasingly viewed through the lens of national security and economic resilience.
The development follows a recent meeting between President Trump and Intel CEO Lip-Bu Tan. Intel's stock experienced a notable surge of over 7%, closing at $23.86 on August 15, 2025, reflecting investor optimism regarding potential government backing. This initiative aligns with the administration's broader strategy to strengthen the U.S. semiconductor ecosystem, as underscored by the CHIPS and Science Act of 2022. This legislation allocated $50 billion to revitalize domestic research, development, and manufacturing, with the goal of tripling U.S. semiconductor manufacturing capacity by 2032.
Intel has faced a substantial decline in market value, falling from $185.5 billion in 2020 to approximately $97.26 billion as of August 15, 2025. Profits have reportedly halved. The proposed investment could accelerate Intel's $28 billion chip complex in Ohio, which is now anticipated to begin operations between 2030 and 2031, a delay from its original timeline. This complex is intended to be a cornerstone of U.S. advanced manufacturing.
The discussions occur amidst intensifying technological competition between the United States and China, particularly in semiconductors and artificial intelligence, leading to increased export controls and a global push for supply chain diversification. CEO Lip-Bu Tan's history of investments in Chinese technology firms through his venture capital firm, Walden International, has drawn scrutiny from U.S. lawmakers regarding potential conflicts of interest.
A potential government equity stake in Intel would represent a departure from traditional subsidy models, moving towards a more direct form of industrial policy, similar to the government's support for MP Materials to bolster the rare earth magnet supply chain. Such a move could provide Intel with crucial capital and political backing to stabilize its turnaround efforts and ensure the timely development of its advanced manufacturing facilities, thereby securing domestic leadership in a field critical to global technological advancement and national security.