On August 11, 2025, Lip-Bu Tan, the CEO of Intel Corp., was seen departing from a meeting at the White House. This follows reports from Bloomberg indicating that the Trump administration is in discussions regarding a potential government stake in Intel, a move aimed at bolstering the company amidst its ongoing struggles. Following the news, Intel shares experienced a 7% increase.
Intel, recognized as the only U.S. company capable of manufacturing high-performance chips domestically, has faced increasing pressure from rivals such as Taiwan Semiconductor Manufacturing Company and Samsung, which also operate U.S. facilities. President Trump has advocated for a greater domestic production of chips and high-tech components. Should the government invest, the funding would specifically support Intel’s factory developments in Ohio.
Tan's visit to the White House came amid calls from Trump for his resignation, based on alleged connections to China. Despite this, Intel maintained that Tan is committed to enhancing U.S. national and economic security. In response to inquiries about the potential government stake, an Intel representative declined to provide further details.
Since taking over earlier this year, Tan has navigated challenges such as Intel’s failure to capture a significant share of the artificial intelligence chip market and the necessity to attract major customers for its foundry services. The company has also revised its plans for manufacturing sites in Europe, opting to scrutinize spending closely.
Intel shares have shown a notable recovery this year, increasing by 19% after a substantial drop of 60% in 2024, marking the company’s worst performance on record. The U.S. government’s increasing involvement in major industries suggests a trend toward active investment strategies, as seen in other recent equity stakes taken in companies like Nvidia and Advanced Micro Devices.