Intel’s stock rose more than 7% on Thursday after reports said the Trump administration might invest in the company. The deal would help Intel build a big chip factory in Ohio, but it’s not clear how much money the government might invest.
A White House spokesperson said people shouldn’t believe rumors unless the government officially confirms them.
This news came just days after Intel’s CEO, Lip-Bu Tan, met with President Trump. Trump had earlier criticized Tan for having past business ties to China. Intel didn’t comment on the meeting but said it supports Trump’s push to grow US tech and manufacturing.
• Intel has struggled in recent years, especially in AI chips, while rivals like Nvidia have surged ahead.
• Its value has dropped by more than half since 2020.
• Experts say this deal could be a “lifeline” for Intel, giving it money and government support.
The deal shows how the US government is getting more involved in private tech companies—similar to what happens in China. This week, Nvidia and AMD also agreed to give 15% of their China earnings to the US government.
Some people think it’s unfair to help Intel, but others say it’s important for national security. Intel is one of the few US companies that can make advanced chips at scale.
🏭 Ohio Factory Plans
Intel wants to build the world’s biggest chip factory in Ohio, but the project has faced delays. Experts say this factory is key to helping the US compete with global giants like TSMC and Samsung.
The government probably won’t buy a majority of Intel, but might invest enough to have some influence. Some experts say the US should also support smaller chip companies, not just Intel.
👨💼 Intel’s New CEO
Lip-Bu Tan became CEO in March and is working to fix Intel’s finances and catch up in AI. Trump recently called for Tan to resign, accusing him of ties to Chinese military-linked companies.