The Shiro Copr , JAKARTA - The administration of the President of the United States (US) Donald Trump it is reported that they are discussing the possibility of taking ownership of about 10% of the shares in Intel Corp.
Quoting Bloomberg On Tuesday (8/19/2025), this step could potentially make the US government the largest shareholder in the chip manufacturer facing these pressures.
According to a White House official and several sources who are aware of the matter, the federal government is considering an investment scheme that would convert part or all of Intel's grants from the US Chips and Science Act into shares. Intel is scheduled to receive a total grant of $10.9 billion from the program, allocated for commercial and military production.
The grant value is estimated to be sufficient to finance the targeted ownership. With Intel's current market capitalization, a 10% stake is estimated to be worth about US$10.5 billion. However, the size of the ownership and the final decision on whether the White House will proceed with this plan remain uncertain.
Intel stock fell as much as 5.5% after Bloomberg Reporting on the discussion on Monday (8/18/2025), although last week its shares jumped 23%—the best weekly increase since February.
White House spokesperson Kush Desai refused to comment further on the details of the discussion. He only emphasized that there is still no official agreement until it is directly announced by the government. Meanwhile, Intel has not provided a response.
The White House official also mentioned the possibility of converting other Chips Act grants into stock ownership in recipient companies. However, it is not yet clear whether this idea has received broad support within the administration or has been discussed with other companies.
As a note, last month the U.S. Department of Defense made an unusual move by taking a $400 million preferred stake in the rare earth mineral producer MP Materials Corp. The deal made the Pentagon the largest shareholder of the company.
The news of the government's potential investment in Intel had previously triggered a stock rally for the company after Bloomberg News first revealed discussions between U.S. officials and Intel representatives last week.
Like other recipients of the Chips Act, Intel's grant is scheduled to be disbursed in stages as the project targets agreed upon are met. As of January, Intel has already received a disbursement of $2.2 billion in grants.
However, it is not yet clear whether the US$2.2 billion will be included in the share ownership scheme, whether there have been additional grants since Trump took office, or the disbursement schedule under this stock conversion plan.
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