The Trump administration could be gearing up for a bold move: a direct equity stake in Intel (NASDAQ:INTC). According to people familiar with the talks, the potential deal is aimed at reviving Intel’s long-delayed factory project in Ohio, once promised to be the largest chipmaking hub in the world. Shares jumped 7.4% to $23.86 on the day of the news and gained as much as another 4% after hours, as the market reacted to the possibility of federal backing. The discussions come just days after President Donald Trump met with Intel’s new CEO Lip-Bu Tan, whom he recently criticized for alleged ties to China. While the deal’s details are still in fluxand could fall apartany move would signal Tan’s job is likely safe for now.
This wouldn’t be the first time the Trump administration takes a hands-on approach with corporate America. It recently took a 15% cut of certain semiconductor sales to China and secured a golden share in U.S. Steel to help clear a foreign acquisition. Even more surprising? The Pentagon just became the biggest shareholder in MP Materials (NYSE:MP) with a $400 million preferred equity deal. If Intel follows the same playbook, investors could see a blend of equity, guaranteed purchases, and government-led financingsomething the White House sees as a way to crowd in private capital while reassuring markets that the U.S. government has skin in the game.
Intel’s Ohio site was expected to benefit heavily from the 2022 CHIPS Act, but with funding momentum now uncertain, a direct government stake could change the equation. The factory buildout has already been pushed into the 2030s, and Tan has shifted focus toward stabilizing the company’s finances. Earlier this year, one idea floated was to have TSMC (NYSE:TSM) operate Intel’s factories under a joint venturebut that plan never advanced. What’s unfolding now could become a new chapter in U.S. industrial policy: one where Washington doesn’t just regulate or subsidizebut invests, owns, and influences.
This article first appeared on GuruFocus.