U.S. in Talks With Intel Over Potential Government Stake in Chipmaker

The Trump administration is reportedly in discussions with Intel to acquire a stake in the iconic but financially strained chipmaker.

Intel has been tagged by a former CEO as cash-poor and unable to afford to invest in the capacity needed. (Photo: ASUS)

The size of the potential investment remains unclear, according to a Bloomberg report.

Hanging in the balance is Intel’s long-delayed facility in Licking County, Ohio, near Columbus, Andrew Nusca reported for Fortune Tech.

Once touted as the future site of the world’s largest chipmaking plant, the project has been plagued by delays tied to Intel’s precarious finances. According to Bloomberg, “the plans stem from a meeting this week between Trump and [Intel CEO Lip-Bu] Tan.”

But negotiations are still at an early stage.

As former Intel CEO Craig Barrett wrote in Fortune this week, “Intel is cash-poor and can’t afford to invest in the capacity needed” to compete with Taiwan’s TSMC, South Korea’s Samsung, and GlobalFoundries in the U.S.

A federal cash infusion aimed at bolstering domestic chipmaking against Chinese competition could shift the balance. Intel shares rose 8% following the report.