Treasury Secretary Scott Bessent confirms US government considering taking stake in Intel, says the answer Donald Trump has for this is we should…

US treasury Secretary

Scott Bessent confirmed Tuesday that the Trump administration is exploring taking an equity stake in struggling chipmaker Intel, converting billions in government grants into ownership rather than giving away taxpayer money for free.Speaking to CNBC, Bessent said any potential deal would focus on stabilizing Intel for

domestic chip production

rather than pressuring companies to buy from the semiconductor giant. "The last thing we're going to do is put pressure, is take the stake and then try to drum up business," he told the network.

Trump wants return on taxpayer investment in semiconductor manufacturing

The discussions center on converting approximately $10.9 billion in

CHIPS Act grants

into a roughly 10% equity stake in Intel, potentially making the US government the company's largest shareholder. Commerce Secretary Howard Lutnick echoed this approach during a separate CNBC interview, criticizing the

Biden administration

's original structure.

"Donald Trump turns that into saying, 'Hey, we want equity for the money,'" Lutnick explained. "America should get the benefit of the bargain. Why are we giving a company worth $100 billion this kind of money?"The unusual arrangement would mark a significant departure from traditional government support for private companies, reflecting Trump's business-oriented approach to federal investments. Lutnick clarified that any equity stake wouldn't include voting rights or governance control.

National security concerns drive push for domestic chip production

Bessent emphasized national security motivations, citing America's dangerous reliance on Taiwan for advanced semiconductors. "The single point of failure for the global economy is that 99% of the advanced chips in the world are made in Taiwan," he said, calling it a critical vulnerability requiring immediate attention.Intel has struggled to compete with rivals like Nvidia and Qualcomm, recently announcing plans to lay off 15% of its workforce. The company received a boost Monday when Japan's SoftBank announced a $2 billion investment, sending Intel shares up 7.5%.White House press secretary Karoline Leavitt called the potential deal "a creative idea that has never been done before" to ensure reshoring critical supply chains while benefiting taxpayers. However, no official announcement has been made regarding the equity discussions.