Recently, Bloomberg cited a White House official and other informed sources, reporting that the Trump administration is allegedly discussing the acquisition of a 10% stake in U.S. chipmaker Intel (INTC).

Earlier this month, President Trump demanded the resignation of Intel CEO Chen Lifu due to his ties with China, which intensified negotiations between the White House and Intel. On August 11, the administration met with Intel CEO Chen Lifu.

The report stated that the federal government is considering a potential investment in Intel, possibly converting some or all of the grants the company received under the U.S. CHIPS and Science Act into equity.

An informed source revealed that U.S. Secretary of Commerce Howard Lutnick is exploring ways to improve the return on investment for companies like Intel that receive funding under the act. Intel is the largest beneficiary of the act—the Biden administration announced in 2024 that Intel is eligible for approximately $8 billion in grants to build or expand chip manufacturing plants in Ohio and across the U.S. The company will receive the funds after reaching certain milestones. The source said Lutnick believes converting these funds into equity in Intel may be the best way for the government to support the company while protecting taxpayers' interests.