The Trump administration is engaged in discussions with Intel regarding a potential investment in the chipmaker, Bloomberg reported citing sources familiar with the matter.

Details regarding the size of the proposed investment remain unspecified.

However; such a deal could provide essential support for Intel’s ambitious factory hub project in Ohio, which the company had previously aimed to establish as the largest chip manufacturing facility globally, although this initiative has faced numerous delays.

These negotiations come on the heels of President Donald Trump’s recent call for the removal of Intel CEO Lip-Bu Tan, whom he has described as “highly conflicted” due to concerns over his previous associations with China.

The current discussions are said to have originated from a recent meeting between President Trump and Tan.

While specifics are still being worked out, one source indicated that the US government would finance the investment.

Another source warned that the discussions are still in a preliminary stage and may not result in a formal agreement.

In response to the news, Intel’s shares rose by as much as 8.9% on 14 August 2025, ultimately closing 7.4% higher at $23.86, giving the company a market capitalisation of approximately $104.4bn, the report added.

The stock continued to increase by an additional 4% in after-hours trading.

“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” Bloomberg quoted White House spokesman Kush Desai as saying.

Intel has chosen not to comment on the ongoing discussions.

A representative stated that the company is “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership” and expressed a willingness to continue working with the Trump administration on shared goals, while refraining from commenting on speculation.

An agreement would provide a financial boost to Intel at a time when the company is implementing cost-cutting measures and workforce reductions.

It also suggests that Tan is likely to remain in his role as CEO.

This situation represents another instance of the Trump administration’s direct involvement in a key industry. Previously, the administration reached an agreement to receive a 15% cut of certain semiconductor sales to China and took a so-called golden share in United States Steel Corp. as part of a deal to facilitate its sale to a Japanese competitor.

The discussions regarding Intel also reflect a recent announcement from the Defense Department, which disclosed plans to take a $400m preferred equity stake in US rare-earth producer MP Materials Corp., thereby making the Pentagon the largest shareholder in the company.