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The enthusiasm surrounding Intel seems to be waning rapidly as details of the Trump administration’s plans to boost the company’s domestic manufacturing capacity continue to emerge, disappointing investors who had hoped for more substantial support.
Bloomberg now reports that the Trump administration is considering a 10 percent stake in Intel, valued at approximately $10 billion based on the chipmaker’s current market capitalization. This news has caused Intel’s shares to drop by about 5 percent, indicating widespread investor disappointment.
The primary goal of this move was to jump-start Intel’s much-delayed Ohio fab, which is expected to come online in the early 2030s at the earliest. Investors appear skeptical that a $10 billion investment might not be sufficient to expedite the commissioning of the Ohio fab.
Last week, Wccftech reported that the Trump administration was reportedly considering using CHIPS Act funds to partially finance a stake in Intel. Currently, only about $2.7 billion remains under the CHIPS Act, and Bloomberg now suggests that the administration is contemplating converting the already allocated CHIPS Act funding into equity, further pressuring Intel’s shares.
The discussion around a potential US government stake in Intel first surfaced during a meeting between Intel’s CEO, Lip-Bu Tan, and President Trump at the White House earlier this week. During this meeting, the President reportedly changed his stance from characterizing Tan as a national security threat to praising his “success and rise,” calling it an “amazing story.”
