Catenaa, Friday, August 15, 2025- The US government is considering taking a stake in Intel, helping the struggling chipmaker make a turnaround through infrastructure investment.
According to Bloomberg, the plan could involve the government helping Intel expand its planned chip complex in Ohio, which the company has had to delay as part of its ongoing turnaround effort. Intel announced the facility in 2022 with an initial investment of $20 billion that could grow to $100 billion over time.
In a statement, a company spokesperson said, “Intel is deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership. We look forward to continuing our work with the Trump Administration to advance these shared priorities, but we are not going to comment on rumors or speculation.”
The Ohio site was supposed to include two new manufacturing plants and start producing chips by 2025, but that’s since been delayed into the 2030s. CEO Lip-Bu Tan, who took over when former CEO Pat Gelsinger was ousted by the company’s board due to the slow turnaround in 2024, has since delayed the plant even further.
The Trump administration is making a major push to reshore American chip manufacturing.
Intel and rivals TSMC, Samsung, and others have been working to build more chip fabrication plants in the US since the Biden administration signed the CHIPS Act in 2022.
Shares of Intel rose more than 4% on Friday following the report after a week of declining, with President Trump calling for the resignation of CEO Tan.
Part of Intel’s plan under Gelsinger was to turn Intel into a contract chip manufacturer, similar to TSMC. But the gambit has run into trouble.
So far, the foundry’s main customer is still Intel, and the company is reportedly facing headwinds in getting its 18A chip technology up to the level needed to satisfy clients.
