A PYMNTS Company

White House Explores Using Chips Act to Back Intel

By  |  August 17, 2025

The Trump administration is considering channeling money from the US Chips Act into an equity stake in Intel Corp., according to Bloomberg. The potential move is aimed at stabilizing the struggling semiconductor giant and strengthening domestic chip production, people familiar with the matter said.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Per Bloomberg, officials are examining whether existing Chips Act grants could be converted into shares of the company, whether fresh funds might be allocated from other sources, or whether a mix of Chips Act support and alternative financing could be used. The deliberations remain preliminary, with no final decisions made.

    The prospect of federal backing has already lifted investor sentiment. Intel’s stock has surged 11% over the past two trading sessions, marking its strongest weekly advance since February. Bloomberg noted that while Intel has been cutting costs and reducing headcount, new government support could provide significant financial relief.

    Related: Intel Challenges €376 Million EU Fine in Ongoing Antitrust Dispute

    Intel has emerged as one of the largest recipients of Chips Act benefits since the legislation was passed in 2022. The company secured $7.9 billion in grants for commercial chipmaking projects and up to $3 billion more tied to the Pentagon’s Secure Enclave initiative. In addition, Intel can access as much as $11 billion in federally backed loans under the program, Bloomberg reported.

    Chief Executive Officer Lip-Bu Tan, who recently met with President Donald Trump, is expected to remain at the helm despite prior criticism from the president, according to people familiar with the discussions. The administration is moving to accelerate the use of Chips Act resources, prioritizing industries it views as vital to national security.

    Representatives for the White House, the Commerce Department, and Intel did not immediately respond to requests for comment, Bloomberg said.

    Source: Bloomberg