The Trump administration is considering taking a roughly 10% stake in Intel Corp. (INTC), potentially making the U.S. government the chipmaker’s largest shareholder. The move would involve converting up to $10.9 billion in Chips and Science Act grants into equity, according to officials familiar with the discussions.
- The potential stake would be worth about $10.5 billion at Intel’s current market value.
- Intel has been awarded $10.9 billion in Chips Act grants for both commercial and military chip production.
- The company had received $2.2 billion in disbursements as of January, with additional tranches tied to project milestones.
- The White House has not finalized the plan; Intel declined immediate comment.
- A similar deal was made last month when the Pentagon took a $400 million equity stake in MP Materials Corp.
- Intel shares surged 23% last week after reports of the discussions, their best weekly gain since February.
Relevant Companies
- Intel Corp. (INTC) – Directly affected by a potential $10.5B government equity stake.
- MP Materials Corp. (MP) – Another recipient of federal equity investment through the Defense Department.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
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