Intel also has access to $3 billion for defense projects and up to $11 billion in loans, making it the largest beneficiary of the Biden-era Chips Act|JiahuiH|CC BY-SA 2.0

The Trump administration is weighing whether to use US Chips Act funds to take an equity stake in Intel Corp., reports Bloomberg.

The idea, still in early stages, would partly convert Intel’s $7.9 billion in existing semiconductor grants or draw from unused funds under the 2022 law.

Intel also has access to $3 billion for defense projects and up to $11 billion in loans, making it the largest beneficiary of the Biden-era Chips Act.

National security priority
Officials see Intel as vital to US national security, especially as its $20 billion Ohio chip project faces delays.

A direct investment would mark an unusual step, echoing recent moves where Washington took stakes in companies like MP Materials and US Steel.

Market Reaction
Intel CEO Lip-Bu Tan, who met President Donald Trump this week, remains secure despite earlier criticism. Shares jumped 5.3% Friday after news of the talks. 

Analysts believe a government stake would help Intel expand domestic production and create jobs. However, some investors argue the company, with annual revenues above $50 billion, may not need direct government assistance.