Intel’s stock jumped more than 7% on Thursday amid reports that the Trump administration is considering taking a stake in the struggling chipmaker to support its planned manufacturing hub in Ohio.
Bloomberg reported that the size of the potential stake remains unclear, but the move could provide vital funding for Intel’s long-delayed Ohio factory, envisioned as the world’s largest chip manufacturing facility. The project is seen as a cornerstone of America’s bid to regain its edge in advanced semiconductor production.
White House spokesman Kush Desai urged caution, calling any discussion of “hypothetical deals” speculative until officially announced. Intel declined to comment, but told Bloomberg it remains “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership.”
The talks reportedly follow a meeting between Intel CEO Lip-Bu Tan and President Trump. The president recently accused Tan of being “highly conflicted” over past ties to China, and last week even called for his resignation on social media.
Analysts say the deal could be a lifeline for Intel, which has lost more than half its market value since 2020 now standing at $104 billion after falling behind in the AI chip race to rivals like Nvidia. Tech analyst David Nicholson of The Futurum Group said government backing would not only stabilize Intel but also signal a growing trend of closer ties between Washington and private industry, similar to state-led industrial strategies in China.
“Some will see this as unfair support,” Nicholson noted, “but most will agree it’s strategically vital for the US.”
The potential investment comes as the Trump administration steps up direct involvement in the tech sector. Earlier this week, Nvidia and AMD agreed to pay 15% of their Chinese revenues to the US government.
Backing Intel could be viewed as a “special case,” according to analyst Austin Lyons, given its role as America’s best shot at competing with Taiwan’s TSMC and South Korea’s Samsung. The Ohio plant, he said, could secure domestic production of high-end chips critical to national security and economic competitiveness.
