SAN FRANCISCO - The Trump administration is considering a 10 percent stake in Intel Corporation to support US semiconductor manufacturing and help revive the struggling chipmaker, US media reported Monday.
Sources familiar with the matter, speaking on condition of anonymity, said discussions have included converting $10.86 billion in recent federal grants into equity in Intel. If completed, the move would make the US government Intel's largest shareholder.
It remains unclear whether the idea has broad support within the administration, what the exact size of the stake would be, or whether the government will proceed with the plan.
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Reports from The New York Times and Bloomberg, citing informed sources, also said it is uncertain whether the Trump administration will pursue similar arrangements with other companies that received funding under the CHIPS and Science Act.
White House spokesman Kush Desai declined to comment on the details of the negotiations, saying that no agreement should be considered official unless formally announced by the government.
The US Department of Commerce, which oversees the CHIPS and Science Act, also declined to comment, and Intel has not yet responded.
Industry analysts noted that if implemented, the proposal would mark one of the largest government interventions in a US company since the 2008 financial crisis.
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If the discussions lead to a deal, it would require approval from Intel's board of directors. In addition, the transaction could face challenges to its legitimacy from Intel shareholders or industry peers.