The U.S. government is in early talks to take a stake in Intel. Bloomberg reports that the discussions aim to strengthen domestic semiconductor production.
This would also support Intel’s delayed chip plant in Ohio. The talks come at a critical time for the global chip industry.
Supply chain disruptions have exposed U.S. reliance on foreign manufacturing. And tensions with China have intensified the push to secure local production.
Intel Leadership
The discussions follow a turbulent week for Intel leadership. Days earlier, President Donald Trump called for CEO Lip-Bu Tan to resign.
He cited perceived conflicts of interest. While he offered no further details, the statement came after Senator Tom Cotton questioned Tan’s alleged links to China.
On August 11, Tan met with administration officials to address concerns and explore ways to collaborate.
The meeting reportedly set the stage for talks about a potential government investment. And Intel has issued a brief statement regarding this.
“Intel is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership,” a spokesperson said. “We will not comment on rumors or speculation.”
Washington’s Interest
A government stake would be more than a financial transaction but a strategic investment in national security and economic stability.
Semiconductors power smartphones, computers, vehicles, and military systems. A disruption in production can affect multiple industries.
U.S. officials have expressed concern over dependence on chipmakers in Taiwan and South Korea. Intel’s Ohio facility was expected to help reduce that reliance.
However, repeated delays have stalled progress. A government investment could accelerate construction and ensure a stable domestic supply.
Competition
The U.S. government’s effort can be perceived as a strategy to maintain the lead in advanced technology.
China has heavily funded its chip industry to achieve self-sufficiency, especially with the imposed restrictions on its purchase from U.S. companies.
To stay competitive in the face of rivals like China, Washington has increased support for domestic manufacturing through the CHIPS and Science Act.
A direct stake in Intel could give the government influence over production priorities while providing steady funding and political backing for recipients.
Also read: Nvidia Will Sell AI Chips to China Again
