Trump may take a stake in Intel as part of his chip power play, fresh off cutting a 15% China-sales deal with Nvidia and AMD.

The White House Wants Chips. And Change.

Forget subtle industrial policy. The Trump administration is openly flirting with buying a stake in Intel, the last major US-born company capable of making the fastest semiconductors on home soil. According to Bloomberg and other outlets, President Trump met with Intel CEO Lip-Bu Tan this week, after which talk of a direct government investment sent Intel’s stock up over 7%.

It’s an unusual move for the US, Uncle Sam normally sticks to regulation and subsidies rather than buying a seat at the corporate table. But for Trump, it’s part of a broader push to turn America into the OPEC of chips — except instead of oil, the product is measured in nanometers and patent disputes.

Intel, meanwhile, is not exactly coming from a position of strength. The onetime king of microprocessors has been dethroned by rivals, missed multiple technology waves, and repeatedly delayed a much-hyped new Ohio manufacturing plant. Tan, who took over in March, has already swung the axe on 15% of the workforce in a bid to stop the slide.

The Chip Empire Plan?

Why Intel? It’s the only US company that can (in theory at least) make bleeding-edge chips domestically. Taiwan’s TSMC and South Korea’s Samsung can match or surpass Intel’s capabilities, but they’re foreign firms — which, in Trump’s America, means no free pass to the apple pie buffet.

The rumored government stake would not only pump cash into Intel’s turnaround but also serve as a pilot for similar moves in “critical industries.” Think rare earths, AI data centers, and possibly other sectors where the administration thinks America needs to secure supply chains.

This strategy comes alongside other deals that blur the line between economic nationalism and political deal-making. Case in point: the freshly inked arrangement with Nvidia and AMD.

Nvidia and AMD: Back in China, for a Price

Just months ago, Nvidia and AMD were effectively locked out of China’s artificial intelligence (AI ) chip market. The Trump administration banned sales of certain high-performance chips, including Nvidia’s H20 and AMD’s MI308, citing national security. That decision blew a multi-billion-dollar hole in their forecasts.

Now, after some high-level lobbying (and one Jensen Huang meeting at the White House), the ban is gone … to be replaced by a 15% levy on all Chinese revenue from those chips. Nvidia could see up to $23 billion in 2025 H20 sales to China, which means the US government’s slice could be in the billions.

It’s a unique arrangement. As one analyst told the BBC, “You either have a national security problem or you don’t. If you have a 15% payment, it doesn’t somehow eliminate the national security issue.” But in Washington’s current mood, “national security” is apparently negotiable at the right price.

The Intel Question: Security, Symbolism, or Both?

Buying a stake in Intel would fit neatly into this transactional approach. It would also be a symbolic middle finger to the idea that America’s most critical chip capacity should rely on foreign firms.

Still, the timing is delicate. Intel is in turnaround mode, and any government involvement could spook shareholders or clash with Tan’s strategy. The company’s official line is cautious, saying that Intel “… is deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership… but we are not going to comment on rumors or speculation.” Translation: thanks for the attention, but let’s not tank the share price while we’re negotiating…?

Trump, for his part, is leaning into the drama. He called his meeting with Tan “very interesting” and praised the CEO’s “amazing story,” even after reportedly demanding his resignation over alleged China ties. The White House insists no deal is signed, but also makes no secret that it wants similar arrangements with other “critical industry” players.

Pay to Play, the Industrial Policy Edition

Between the Nvidia-AMD levy and a potential Intel buy-in, the administration is building a pattern. Companies cut into Uncle Sam’s bottom line, commit to US production, or accept investment, in return they get market access, export licenses, or direct political backing.

It’s a sharp pivot from the old model of handing out tax credits and hoping companies stay loyal. Instead, Washington is acting more like a venture capitalist with a geopolitical agenda. If it works, the US could lock down control over strategic technologies. If it fails, well, at least the Treasury gets a cut before the next supply chain crisis.

For Intel, the stakes are existential. The company has fallen behind in process technology, ceded dominance in AI chips to Nvidia, and is trying to claw back relevance. A government stake could give it both the funding and the political cover to survive the next decade, or saddle it with political baggage just as it’s trying to run lean.

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