The Trump administration is reportedly considering a potential government stake in Intel, the struggling chipmaker, as part of a broader strategy to boost U.S. semiconductor manufacturing. The move comes amid growing concerns over reliance on foreign chip production and a renewed push for domestic high-tech industries. Intel’s stock surged 7% following the report, signaling investor confidence in the potential government intervention.
The administration’s interest in Intel aligns with President Trump’s long-standing advocacy for reshoring manufacturing and reducing dependence on overseas production. The proposed stake would potentially provide critical financial support for Intel’s ongoing factory expansions in Ohio, where the, the company is investing billions to modernize its manufacturing capabilities. While the details of the administration’s plan remain unclear, the prospect of federal involvement has sparked renewed interest in the semiconductor industry, highlighting the strategic importance of domestic chip production in the current geopolitical and economic climate.
Intel, the only U.S. company with the capability to manufacture the fastest chips on U.S. shores, faces significant competition from overseas firms such as Taiwan Semiconductor Manufacturing Company and Samsung, which also operate U.S. factories. However, the administration’s focus on domestic production underscores a broader effort to secure control over critical technologies and reduce vulnerability to global supply chain disruptions. The government’s potential stake would represent a significant shift in U.S. economic policy, signaling a willingness to intervene in the private sector to achieve strategic national objectives.