In a dramatic market move Friday, Intel's stock jumped notably in premarket trading—up about 4.6%—after reports surfaced that the Trump administration is contemplating taking an ownership stake in the chip giant. This development follows a high-profile meeting between President Trump and Intel CEO Lip-Bu Tan, held just days after the President publicly called for Tan's resignation over concerns about his alleged ties to Chinese businesses. Intel has not confirmed the discussions.Market watchers say that federal backing could be a much-needed lifeline for Intel's foundry business, potentially encouraging more U.S. fabless chip designers to route their manufacturing through its factories. However, experts caution that while this may shore up confidence, it doesn’t fix the deeper issue—Intel’s lag in advanced-node chipmaking. Indeed, not long ago, Intel warned of possibly exiting chip production if it couldn’t secure external customer commitments, and it has since delayed the construction of a major fabrication complex in Ohio.The news introduced a wave of optimism among investors, giving the stock a lift after a volatile week. Intel’s shares had already climbed nearly 20% since Monday, though many remain wary. The growing hope is that government involvement could act as a springboard—though the real test will be whether this support translates into tangible gains in capability and competitiveness.
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