Trump administration in talks to take 10% stake in Intel

Intel has been slated to receive a combined $10.9bn in Chips Act grants for commercial and military production, and the figure is roughly enough to pay for the US government's holding. File Picture

The Trump administration is in talks to take a 10% stake in Intel by converting some or all of the struggling company's Chips Act grants into equity.

Shares of Intel fell about 3% on Monday, after rallying last week on hopes of US federal support. A 10% stake in the American chipmaker would be worth about $10bn.

Intel has been slated to receive a combined $10.9bn in Chips Act grants for commercial and military production, and the figure is roughly enough to pay for the US government's holding, Bloomberg News reported, citing a White House official and other sources.

Intel declined to comment on the report, while the White House did not respond to a request for comment. Reuters could not immediately verify the report.

Media reports said last week that the US government may buy a stake in Intel, after a meeting between CEO Lip-Bu Tan and US president Donald Trump that was sparked by Mr Trump's demand for the new Intel chief's resignation over his ties to Chinese firms.

• Reuters