Trump Administration Explores Government Equity Investment in Intel; Shares Soar Nearly 9%

Media outlets report that the Trump administration is negotiating with Intel Corporation on a potential government equity investment designed to bolster the company’s domestic manufacturing initiatives. The announcement propelled Intel’s stock up as much as 8.9% late Thursday, with an additional 3.6% gain in after-hours trading.

Insiders indicate the proposed deal would shore up support for Intel’s planned Ohio fabrication campus, which Intel had once envisioned as the world’s largest chip manufacturing facility but has repeatedly delayed. The exact scale of the government’s potential stake has not been disclosed.

This initiative reportedly follows a recent meeting between President Trump and Intel CEO Chen Liwu. One source told the press that the plan envisions the U.S. government purchasing shares in Intel, though specific terms remain under discussion. A second insider cautioned that the proposal is still evolving.

After the report’s release, Intel closed at $23.86, up 7.38%, and later rose another 3.6% in post-market trading. The stock has gained approximately 18% year-to-date. In a statement, Intel expressed strong support for President Trump’s efforts to reinforce U.S. leadership in technology and manufacturing, affirmed its readiness to collaborate further, and declined to comment on speculation.

Analysts note that, if finalized, a government investment could strengthen Intel’s financial position amid recent cost-cutting and layoffs and signal continued confidence in Chen Liwu’s leadership, despite earlier calls for his resignation.

This move aligns with several high-profile interventions in strategic industries by the administration. State media reports indicate that Nvidia Corporation and Advanced Micro Devices, Inc. agreed to remit 15% of revenue from China-specific chip sales to the U.S. government in exchange for export licenses. The administration also acquired a golden share in U.S. Steel Corporation to facilitate its sale to Nippon Steel Corporation. Last month, the Department of Defense made an unprecedented $400 million preferred-equity investment in MP Materials Corp., becoming the company’s largest shareholder.

Such large-scale federal investments reflect the administration’s policy of nurturing domestic “national champion” firms in critical sectors. Intel’s Ohio project has faced multiple postponements. As a semiconductor pioneer, Intel has seen its market share and technological edge erode in recent years. Former CEO Pat Gelsinger had prioritized the Ohio expansion as a centerpiece of the company’s turnaround strategy. However, financial headwinds forced Intel to push the project into the 2030s, with further slowdowns announced in July. Since taking the helm in March, Chen Liwu has concentrated on shoring up the company’s finances.

Originally positioned to be the primary beneficiary of the 2022 Chips and Science Act, Intel’s prospects shifted under the current administration. U.S. officials at one point proposed a joint venture with Taiwan Semiconductor Manufacturing Company Limited, but TSMC CEO C.C. Wei reaffirmed that his company remains focused on its own operations.

Ohio’s political significance may also be a factor. President Trump won the state in all three of his presidential bids, and Republicans secured a Senate seat there in 2024. Vice President J.D. Vance previously served as a U.S. Senator for Ohio. Despite the state’s recent Republican lean, former Democratic Senator Sherrod Brown’s announcement of a 2026 Senate campaign has recast Ohio as a pivotal battleground.