The Trump administration is in talks with Intel about a possible US government investment in the chipmaker, according to people familiar with the matter.

The potential deal could help fund Intel’s planned large chip factory in Ohio, which has faced delays and financial challenges.

The size and details of a possible government stake are not yet clear.

The discussions follow a recent meeting between President Donald Trump and Intel CEO Lip-Bu Tan.

No agreement has been reached, and the talks may end without a deal. Intel’s share price rose 7.4% to US$23.9 in New York on August 14, and climbed as much as 4% more after hours.

White House spokesperson Kush Desai said any talks about hypothetical deals should be treated as speculation unless officially announced.

Intel declined to comment on the discussions.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Strategic government investments reflect broader shift toward public-private partnerships

The potential Intel stake represents part of a growing trend where governments directly invest in private companies for national security purposes.

This approach has gained momentum as great power competition has made national security inseparable from private sector capabilities, requiring new forms of collaboration beyond traditional procurement processes1.

The Trump administration’s recent moves—including a $400 million Defense Department investment in MP Materials—demonstrate this strategic approach to supporting domestic champions in critical industries.

These investments differ from typical government contracts because they create long-term equity partnerships that align government and private sector incentives while providing sustained financial backing.

The pattern suggests the administration views direct equity stakes as more effective than subsidies or loans for ensuring companies execute on strategic priorities like domestic manufacturing.

2️⃣ Intel’s manufacturing struggles make government partnership increasingly attractive

Recent Intel developments