Trump Administration Considers Stake in Intel

The Trump administration is in discussions to acquire an approximately 10% stake in Intel, according to White House sources. This move could make the U.S. the largest shareholder in the semiconductor company.

The federal government is considering a potential investment in Intel, which would involve converting some or all of the company's grants from the U.S. Semiconductor and Science Act (CSA) into equity. Intel is scheduled to receive a total of $10.9 billion in grants under the CSA for commercial and military production.

The exact size of the stake, as well as whether the White House will choose to proceed with the plan, remain under negotiation. At Intel's current market value, a 10% stake in the chip manufacturing company would be worth approximately $10.5 billion.

Intel's stock fell as much as 5.5% following Bloomberg's report on the talks on Monday. It had risen 23% last week.

White House spokesman, Kous Desai, declined to comment on the details of the discussions.