Wed, 20 Aug 2025

Wed, 20 Aug 2025 US in talks over 10% Intel stake, White House confirms

The potential deal could involve swapping government grants for shares in the chip making giant.
The US government may take a 10% stake in chipmaker Intel as part of a deal that would involve swapping government grants for shares. White House officials say this move would benefit both national security and the economy, but some analysts are skeptical about the potential impact on the company's performance. Intel is struggling to compete with rivals like Nvidia, Samsung, and TSMC, especially in the AI chip market. The deal aims to help Intel build a manufacturing hub in Ohio, which could boost US production capabilities. US Commerce Secretary Howard Lutnick said that in exchange for grants approved during the Biden administration, the government wants an equity stake in Intel. This move is seen as unusual and may add uncertainty for companies already part of federal grant programs. Some analysts believe this deal makes sense given Intel's importance to US semiconductor production, but others are concerned about the potential risks and challenges it could pose, including blurring the line between commercial discipline and political objectives.
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