The Trump administration is reportedly considering taking a 10% equity stake in Intel by converting some or all of its $10.9 billion in Chips Act grants, potentially valuing the stake at around $10 billion.

The move comes amid concerns over Intel’s struggling foundry business and follows a meeting between President Trump and new CEO Lip-Bu Tan.

Analysts say federal backing could help Intel, though the company faces product and customer challenges, Reuters has reported.

The proposal reflects Trump’s broader strategy of government involvement in critical tech and manufacturing sectors, reminiscent of past interventions like the GM bailout.