Shares in Intel jumped by more than 7% on Thursday, following reports that the Trump administration is in talks to take a stake in the chipmaker.
The reported deal would support the technology firm’s plans to build a manufacturing hub in Ohio, according to Bloomberg, which said the size of the potential stake is not clear.
White House spokesman Kush Desai said “discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration.”
The article comes days after a meeting between Intel boss Lip-Bu Tan and US President Donald Trump, who had earlier accused Mr Tan of being “highly conflicted” due to his earlier ties to China.
The BBC has contacted Intel for comment.
According to Bloomberg, the firm’s spokesperson declined to comment on the discussions and said that Intel is “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership”.
The details of the stake and price are still being discussed, the report said.
The reported move would be a “lifeline” for Intel, offering the company funding and government support, said tech analyst David Nicholson from The Futurum Group, a market research firm.
The storied chipmaker has struggled in recent years after falling behind in the AI race, with rival Nvidia leaping ahead. Intel’s stock market value has more than halved to $104 billion (£77bn) since 2020.
The deal would signal a deeper “intertwining” of the government and private businesses in the US, following a trend seen elsewhere in places like China, Mr Nicholson told the BBC.
This week, chip giants Nvidia and AMD agreed to pay the US government 15% of Chinese revenues, in another instance of the Trump administration’s direct intervention in private enterprise.
“Some folks will think that this is unfair that Intel is being propped up, but most will agree that it is strategically vital for the US,” said Mr Nicholson.
Intel’s planned Ohio factory, which is reported to be a key part of talks with Washington, had been touted as a key part of the company’s future.
The firm had a goal to make the factory the world’s largest chip manufacturing facility, but its development has since faced numerous delays.
Though it is uncommon for the US government to directly support a single company, backing Intel could be a “special case” because the stakes are high for America’s chipmaking edge, said tech analyst Austin Lyons.
Intel is the US’ best shot at competing with global rivals like TSMC and Samsung, and the Ohio plant would ensure that the country is able to make high-end semiconductors at home, he explained.
Mr Tan, an American venture capitalist who took over as Intel’s chief executive in March, has focused on getting the firm’s finances in check and catching up in the booming AI chip industry.
In a social media post last week, Trump called for Mr Tan’s resignation, apparently referring to his alleged investments in companies that the US says are tied to the Chinese military.
