【By Observer Net, Chen Sijia】According to a report by Bloomberg in the United States on August 14, several sources have revealed that the U.S. government is negotiating with chip manufacturer Intel to discuss the possibility of the government investing in the company to help expand its manufacturing operations within the United States. The current plan would involve the U.S. government paying for shares, and details are still being sorted out. The potential scale of the stake is unclear, and the negotiations may still end without an agreement.

According to sources, the plan originated from a meeting between U.S. President Trump and Intel's CEO Patrick Pichette on the 11th. The idea is still in its early stages and subject to significant changes. If an agreement is reached, it could help support Intel's planned chip manufacturing center in Ohio. Intel had promised to turn the site into the world's largest chip manufacturing plant, but the project has been repeatedly delayed.

The news quickly boosted Intel's stock price. At the close of trading on the New York Stock Exchange on the 14th, Intel's stock rose 7.4%, bringing the company's market value to about $104.4 billion.

Regarding this, White House spokesperson Kush Das said: "Unless the government officially announces it, discussions about hypothetical transactions should be considered as speculation."

Intel declined to comment. A company representative stated in a statement: "Intel is committed to supporting President Trump's efforts to strengthen American technology and manufacturing leadership. We look forward to continuing our collaboration with the Trump administration to advance these shared priorities, but we will not comment on rumors or speculation."

Intel headquarters in Santa Clara, California, China Vision

At the time when news of the Trump administration considering investing in Intel was released, it had only been a week since Trump had asked Pichette to resign. On August 7, Trump demanded Pichette to immediately step down as CEO of Intel, citing his so-called relationship with China. However, after their meeting on the 11th, Trump changed his stance, praising Pichette as "very successful."

Bloomberg believes that if the Trump administration actually reaches an agreement with Intel, it would strengthen the company's financial situation, which also indicates that Pichette will continue to lead Intel. As a leading company in the chip industry, Intel has been struggling in recent years and has gradually lost market share and technological advantages.

Intel is planning to build a chip manufacturing center in Ohio, with former CEO Pat Gelsinger viewing it as an important step to revitalize Intel. However, Intel's financial difficulties have threatened the project, with factory construction now postponed to after 2030. Since becoming the new CEO in March, Pichette has focused more on stabilizing Intel's financial condition.

Bloomberg pointed out that the Trump administration's new move shows its intention to directly intervene in key industries in the United States. The U.S. Department of Defense proposed an unprecedented plan last month, which would acquire preferred shares in U.S. rare earth producer MP Materials, making the Pentagon the company's largest shareholder. This overturns the traditional understanding of how private companies interact with the government across the United States.

A source revealed that some deals by the Trump administration may be designed following the blueprint of MP Materials, meaning there would be equity investment, guaranteed procurement, loans, private financing, and government partnerships. Many people inside the U.S. government believe that this would allow investors to fully believe that the project is supported by "the most creditworthy institution in the world," while also providing security for taxpayers' funds.

The report states that these major investment measures by the U.S. government are expected not to be one-time transactions. Trump insists on supporting domestic leading enterprises in areas critical to national security, seeking to compete with China in this way.

Mira Riccetti, who served as Deputy Secretary of Commerce for Industrial and Security Affairs during Trump's first term, said: "Depending on the specific structure, equity investment may allow the U.S. government to influence and monitor Intel's activities, especially those involving Chinese business. This may not be possible through regulatory laws or subsidies."

In the second quarter of this year, Intel's losses expanded to $2.9 billion. Analysts say that given the business challenges Intel faces, it may be difficult for the company to increase capital expenditures in the United States. Some industry analysts believe that if Pichette and other executives cannot reverse the financial situation, Intel may eventually need assistance from the U.S. government.

Intel was originally expected to be the biggest beneficiary of the 2022 U.S. Chips and Science Act, but the plan has faced more uncertainty since Trump took office. Earlier this year, officials in the Trump administration proposed the idea of forming a joint venture between chip giant TSMC and Intel. However, TSMC stated that the company plans to continue focusing on its own business.

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