Intel shares surged over 7% Thursday following reports the US government is considering taking a stake in the chipmaker.
The potential investment aims to support Intel’s long-delayed project to build a massive semiconductor manufacturing hub in Ohio, envisioned as the world’s largest chip plant.
This move is seen as critical for US efforts to regain leadership in advanced chip production, currently dominated by Asian firms.
The size of any potential stake remains unclear, according to Bloomberg. White House spokesman Kush Desai urged caution, calling discussions of “hypothetical deals” speculative until formally announced.
Intel declined to comment directly but stated its deep commitment to supporting efforts strengthening US tech and manufacturing leadership. Reports of talks follow a meeting between CEO Lip-Bu Tan and President Trump, who recently criticized Tan over past China ties and even called for his resignation online.
For Intel, struggling after losing significant market value and falling behind rivals like Nvidia in AI chips, government backing could be a lifeline. Tech analyst David Nicholson suggests this signals a trend toward closer Washington-industry ties, similar to state-led strategies elsewhere.
“Some will see this as unfair support,” he noted, “but most will agree it’s strategically vital for the US.” The administration is increasing direct tech sector involvement, evidenced by recent agreements with Nvidia and AMD on Chinese revenues.
Analyst Austin Lyons views potential Intel support as a “special case,” given its role as America’s primary hope to compete with giants TSMC and Samsung.
Success in Ohio could secure vital domestic production of high-end chips needed for national security and economic competitiveness. The market’s strong reaction reflects hope this could finally kickstart the crucial Ohio project.
