The Trump administration is in discussions to take a roughly 10% stake in Intel Corp., a potential investment of about $10 billion that would make the U.S. government the chipmaker’s largest shareholder, according to a report from Bloomberg. This move, which could involve converting grants awarded under the CHIPS Act into equity, coincides with a separate $2 billion investment from Japan’s SoftBank Group Corp.

According to data from the IndexBox platform, the global semiconductor market remains highly concentrated, with Intel facing intense competition. The potential capital infusion is seen as a critical step for Intel to regain its footing in advanced manufacturing and AI chip development, sectors where it has lost significant market share to rivals like Taiwan Semiconductor Manufacturing Co. and Nvidia Corp.

SoftBank’s investment, announced at $23 per share, represents a strategic bet on Intel’s chip manufacturing capabilities to support its ambitions in artificial intelligence. Founder Masayoshi Son is pursuing the “Izanagi” project to develop an AI chip to compete with Nvidia’s products. The dual investments from Washington and a major tech investor provide a substantial vote of confidence in CEO Lip-Bu Tan, whose position had recently been questioned by former President Trump.

The discussions highlight a more aggressive U.S. government approach to strategic sectors, following similar actions like taking a stake in U.S. Steel Corp. While the exact structure and timing of the potential government equity stake are still in flux, it would represent a significant repurposing of CHIPS Act funds originally intended as reimbursements for meeting project milestones. The focus for the administration is particularly on ensuring the completion of Intel’s delayed manufacturing project in Ohio.

Source: IndexBox Market Intelligence Platform