The Trump administration is reportedly in discussions to acquire a roughly 10% stake in Intel Corp (NASDAQ:INTC, ETR:INL), a move that could make the US government the chipmaker’s largest shareholder, Bloomberg News reported on Monday.
A 10% holding in the American semiconductor giant would be worth around $10 billion.
The discussions involve converting funds allocated under the CHIPS Act into equity in Intel, according to the report.
The company has been slated to receive $10.9 billion in grants for commercial and military production, a sum roughly equivalent to the proposed government stake.
The news comes days after President Trump met with Intel CEO Lip-Bu Tan.
The US government has been pushing to increase domestic semiconductor production under the CHIPS Act. However, Intel continues to face hurdles in its foundry business and trails rivals Nvidia Corp and Advanced Micro Devices Inc in the rapidly growing artificial intelligence market.
Shares of Intel fell more than 4% on Monday afternoon, reaching $23.59.