The US government is reportedly weighing up plans to take a stake in Intel as the chip giant’s troubles continue.
According to reports from Bloomberg, the proposed deal aims to support the company's efforts to expand manufacturing operations across the US.
A key focus here would reportedly be ramping up development of its delayed Ohio manufacturing facility. While initially touted to open this year, the company has repeatedly pushed back the launch date.
While first delayed until late 2026, in February this year Intel admitted the site wouldn’t become operational until 2030-2031.
The reports from Bloomberg come in the wake of sharp criticism from the US administration. Last week, President Donald Trump suggested CEO Lip-Bu Tan resign amid claims over alleged ties to China.
Subsequent talks between Tan and the administration appear to have been productive, with President Trump later hailing the meeting in a post on Truth Social.
"His success and rise is an amazing story," he wrote.
ITPro has approached Intel for comment, but received no response by time of publication.
In a statement given to Bloomberg, a spokesperson for Intel said the company is “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership”.
“We look forward to continuing our work with the Trump Administration to advance these shared priorities, but we are not going to comment on rumors or speculation,” the spokesperson added.
Intel’s long-running woes
Intel has experienced significant troubles in recent years, falling behind competitors such as AMD and, notably, Nvidia, since the advent of the generative AI race. Intel's market value, for example, has halved since 2020.
The company has gone through repeated rounds of layoffs and a restructuring effort. Last month, the company announced plans to cut its global workforce by 15% and cancelled plans to develop new chip factories in Poland and Germany.
Tan’s appointment as CEO earlier this year was viewed at the time as an effort to steady the ship following Pat Gelsinger’s retirement. In the wake of the appointment, reports from Reuters detailed plans for an overhaul of the company’s chip and AI strategies in a bid to breathe new life into the company and reverse sluggish revenue growth.
Any involvement from the Trump administration could represent a lifeline for the semiconductor giant, and the White House has made clear its plans to ramp up domestic manufacturing and support for fellow chip giants in recent months.
Earlier this week, Nvidia and AMD announced an agreement with the administration to pay 15% of revenues from Chinese chip sales.
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