Report says

The Trump administration is reportedly in talks with Intel to invest in wood chip makers with an investment of about $10 billion.

according to Bloomberg Through unnamed White House insiders, the U.S. government looks for stakes in the company (about $10.5 billion) based on its market value. The terms of the transaction, even if it happens, are still uncertain. But one option could convert grants granted under the Chip Act to fair. The law was enacted by the former Biden administration and provides federal funding for domestic semiconductor manufacturing.

In the AI boom, Intel lags behind foreign competitors such as Taiwan’s semiconductor manufacturing company (TSMC) and US chip giant Nvidia. President Trump will improve chip manufacturing in the United States and ensure competitive advantages with foreign powers such as China have become a priority. One of the three most recent AI execution orders signed by Trump promotes U.S. technology at home and abroad. When the president announced the Stargate project, one of his first technology-related actions was a $500 billion joint venture with OpenAI, Oracle and others to invest in AI infrastructure.

Founded in 1968, Intel has a long history of semiconductor manufacturing, but failed to leverage complex GPUs with AI models. Even before the mainstream of AI emerged, many companies moved their manufacturing industries abroad. In 2020, Apple ended a 15-year partnership with Intel and attacked TSMC in Taiwan to make chips and choose cheaper, more advanced processors.

The U.S. government investment could restore Intel’s marking status and match the Trump administration’s plan to develop U.S. manufacturing technology. The report comes after Trump met with Intel CEO Lip-Bu Tan last week, and reportedly discussed a deal.