Trump administration says it will discuss acquiring 10% stake in Intel

On August 19th, a White House official and other people familiar with the matter reported that the Trump administration is discussing acquiring a roughly 10% stake in Intel (INTC.O), a move that could make the United States the largest shareholder in the struggling chipmaker.

People familiar with the matter said the federal government is considering a potential investment in Intel that would involve converting some or all of the company's funding from the American Chips and Science Act into equity.

Intel was previously scheduled to receive $10.9 billion in CHIPS Act funding for commercial and military production, a figure roughly sufficient to cover the target stake. Based on Intel's current market capitalization, a 10% stake in the chipmaker would be worth approximately $10.5 billion. People familiar with the matter said the exact size of the stake, as well as whether the White House chooses to proceed with the plan, remains in flux.

According to Jinshi, SoftBank Group has signed a $2 billion investment agreement with Intel (INTC.O). SoftBank will purchase Intel common stock at $23 per share. An Intel (INTC.O) spokesperson stated that SoftBank's investment will be made through the issuance of Intel common stock. Based on Intel's market capitalization at Monday's close, that would equate to a stake of less than 2%.