Reports indicate that the Trump administration is in talks with Intel about a potential government investment to support the company’s domestic chip manufacturing efforts. This move could revive Intel’s stalled Ohio factory project. The news sent Intel’s stock surging nearly 9% during Thursday’s trading session, with an additional 3.6% gain in after-hours trading. Analysts suggest this deal could improve Intel’s financial health and signal CEO Pat Gelsinger’s continued leadership.

Government Investment Plan Under Discussion

According to sources familiar with the matter, the proposed agreement would involve the U.S. government acquiring a stake in Intel to support its expansion of domestic production. The exact size of the government’s potential ownership remains unclear.

The plan reportedly emerged after a recent meeting between former President

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Trump and Intel CEO Pat Gelsinger. One source mentioned that the deal would involve federal funding in exchange for equity, though details are still being negotiated. Another source cautioned that the plan remains fluid.

Market Reaction and Intel’s Response

Following the news, Intel’s stock surged 8.9% during Thursday’s session, closing 7.38% higher at $23.86. After-hours trading saw an additional 4.5% increase. Year-to-date, Intel’s shares have risen 18%.

In a statement, Intel said: “We strongly support President Trump’s efforts to strengthen U.S. leadership in technology and manufacturing.” “We look forward to continuing our collaboration with the administration to advance these shared priorities, but we do not comment on rumors or speculation.”

Trump’s Direct Intervention in Key Industries

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This potential deal marks another instance of Trump’s direct involvement in critical industries. Earlier reports revealed that Nvidia and AMD agreed to pay the U.S. government 15% of their China-specific chip revenues in exchange for export licenses.

Additionally, the U.S. government recently acquired a “golden share” in U.S. Steel to facilitate its sale to Japan’s Nippon Steel. The proposed Intel investment resembles the Pentagon’s $400 million purchase of preferred shares in MP Materials Corp., making the Defense Department its largest shareholder.

Delays in Intel’s Ohio Factory Project

Once a leader in the semiconductor industry, Intel has struggled with declining market share and technological setbacks. Former CEO Pat Gelsinger viewed the Ohio factory expansion as central to the company’s revival.

However, financial challenges have jeopardized the project. Intel delayed

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construction until the 2030s and further slowed expansion plans in July. Since taking over in March, CEO Pat Gelsinger has prioritized stabilizing Intel’s finances.

Intel was expected to be a major beneficiary of the 2022 CHIPS and Science Act funding, but the project’s future remains uncertain under Trump’s policies. Earlier this year, U.S. officials proposed a joint venture between Intel and TSMC, but TSMC’s CEO reiterated the company’s focus on its own operations.

Political Implications in Ohio

Trump has won Ohio in three presidential elections, and Republicans secured a Senate seat there in 2024. Though the state leans Republican, Democratic Senator Sherrod Brown’s re-election bid could make Ohio a battleground again.

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