The Trump administration continues to explore taking an equity stake in chipmaker Intel, with the latest reports putting the potential ownership position at 10 percent. This could make the U.S. government the company’s largest shareholder. At the same time, Japanese investment powerhouse SoftBank is pumping $2 billion into the chipmaker.
Bloomberg reports that the Trump administration is continuing discussions to acquire a stake of approximately 10 percent in Intel, according to sources familiar with the matter. The potential investment, which would convert grants made under the U.S. Chips and Science Act into equity, comes as Japan’s SoftBank Group announced a surprise $2 billion investment in the struggling chipmaker.
Trump’s consideration of a significant stake in Intel highlights the increasing focus on securing the domestic semiconductor supply chain and reducing reliance on foreign manufacturers. Intel, once a global leader in chip production, has faced significant challenges in recent years, including manufacturing delays, layoffs, and increased competition from rivals such as Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics.
The Chips and Science Act, passed in 2022, aimed to bolster the U.S. semiconductor industry by providing billions of dollars in grants and incentives for chipmakers to build and expand facilities on American soil. By converting a portion of these grants into equity, the Trump administration seeks to ensure a long-term strategic partnership with Intel and potentially influence the company’s decision-making process.
SoftBank’s $2 billion investment in Intel, announced concurrently with the Trump administration’s discussions, marks a significant vote of confidence in the chipmaker’s future prospects. The Japanese conglomerate, known for its bold bets on technology companies, believes that Intel has the potential to regain its competitive edge in the rapidly evolving semiconductor landscape.
The combination of a substantial U.S. government stake and SoftBank’s investment could provide Intel with the financial resources and political support needed to accelerate its turnaround efforts. Breitbart News previously reported that President Trump reversed his call for Intel CEO Lip Bu-Tan to resign after a meeting at the White House:
During the White House meeting, Tan explained his personal and professional background to Trump and proposed ways in which Intel and the government could collaborate. Born in Malaysia and raised in Singapore, Tan moved to the U.S. and received a master’s degree from the Massachusetts Institute of Technology.
The meeting appeared to be a success, with Trump confirming that it was “a very interesting one” and that Tan’s “success and rise is an amazing story.” The president added that Tan and his Cabinet members would spend time together and bring suggestions to him during the next week.
The potential government stake in Intel also reflects the escalating geopolitical tensions surrounding the semiconductor industry. The U.S. has sought to limit China’s access to advanced chip technology, citing national security concerns, while simultaneously encouraging domestic production to reduce reliance on Asian manufacturers. The Trump administration’s move to take a direct stake in Intel could be seen as a further step in this direction, ensuring that a key player in the U.S. semiconductor ecosystem remains under American influence.
The outcome of these discussions, as well as the impact of SoftBank’s investment, will be closely watched by industry participants, policymakers, and investors alike.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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