The White House reportedly discussing taking a stake in Intel, sending shares climbing

The Trump administration is reportedly contemplating a government investment in Intel, a once-dominant player in the tech industry that has faced significant challenges in recent years. Following a discussion between President Donald Trump and Intel CEO Lip-Bu Tan, Bloomberg has revealed that they are exploring a unique arrangement where the government would acquire a stake in the company. While the exact terms of the deal are still under negotiation, this move could potentially provide much-needed support to the struggling chip manufacturer, which has lagged behind its competitors due to missed technological advancements. In addition to financial support, the White House aims to assist Intel in realizing its plans to establish a new manufacturing facility in Ohio, a project that has encountered multiple delays, as per Bloomberg's reporting. The news of these discussions resulted in a notable surge in Intel's stock, which rose by over 7% during late trading on Thursday. However, it remains uncertain when, or if, such an investment agreement will be finalized. If the deal comes to fruition, it could also set a precedent for similar investments by the Trump administration in other key industries. Sources familiar with the discussions indicated that the administration is actively exploring opportunities to invest in various critical sectors. President Trump has been an advocate for boosting domestic manufacturing, particularly in essential technology areas like semiconductors and artificial intelligence infrastructure. An Intel spokesperson refrained from commenting on the specifics of the Bloomberg report but emphasized the company's commitment to supporting the administration's initiatives aimed at enhancing U.S. leadership in technology and manufacturing. They expressed eagerness to collaborate with the Trump administration to promote shared objectives, but declined to engage in speculation. During a recent meeting, President Trump had previously called for Tan's resignation due to allegations of connections to China. However, after their discussion, Trump described the meeting as "very interesting" and praised Tan's remarkable career trajectory. He expressed anticipation for Intel and his cabinet members to present him with further suggestions in the coming days. The discussions between Trump and Tan were positioned as a chance to explore a wide array of investment and partnership opportunities, allowing Trump to leverage his growing portfolio of unconventional corporate partnerships. Following the meeting, both parties agreed to continue their dialogue in hopes of reaching an agreement. Since taking the helm at Intel in March, Tan has been working diligently to reverse the company's fortunes, which included announcing plans to lay off 15% of its workforce as part of a strategic turnaround effort. This potential partnership between the White House and Intel would not be the first of its kind, as the administration has already engaged in notable agreements with other American firms, including a recent investment initiative by MP Materials, a rare-earth materials company, supported by the U.S. Department of Defense. Additionally, chipmakers AMD and Nvidia recently negotiated a deal to remit a portion of their revenue from semiconductor sales to China in exchange for licenses to resume exports.