Will the US government buy Intel shares? The tech giant's shares reacted

Bloomberg reports the matter, citing White House sources. The federal government is considering a potential investment in Intel, which would involve converting some or all of the company's US Chips and Science Act grants into equity. Intel is expected to receive a total of $10.9 billion from this investment for commercial and military production.

This amount will be roughly enough to cover the planned stake. At Intel's current market value , a 10% stake in the company would be worth approximately $10.5 billion.

Last week, the giant's shares surged 23%, recording their best weekly gain since February. However, following news that the US government was seeking a stake in the company, its market value fell by more than 5%.

The federal government invests in private companies in important sectors

Last month, in an unprecedented move, the Defense Department announced it would take a $400 million preferred equity stake in little-known U.S. rare-earth metals producer MP Materials, a move that would make the Pentagon the company's largest shareholder.

For all Chips Act grants, Intel was originally scheduled to receive payments as the company reached negotiated project milestones. As of January, the company had received $2.2 billion in grants.

It is unclear whether this money will be included in the potential equity stake, whether the company has received additional tranches of the award since President Donald Trump took office, or when Intel will receive the money for the potential equity stake.

Intel withdraws from Europe, will not invest billions in Poland

Last month, Intel officially announced it was withdrawing from construction of a semiconductor factory and test laboratory in Miękinia, near Wrocław. A similar fate befell a project planned for construction in Germany near Magdeburg.

Intel was to invest $4.6 billion in Poland to build a semiconductor integration and testing facility in the Miękinia commune near Wrocław. The investment, located in the Legnica Special Economic Zone, was expected to create 2,000 jobs.