The industry looks very different from when Intel was the clear leader. Nvidia and AMD dominate AI and data centers, while TSMC is the dominant foundry. Intel is now cast as the underdog.

TheStreet. Intel has been on the hot seat with Washington, D.C., over concerns that it may be slow-walking semiconductor manufacturing plans following a shakeup that removed former CEO Pat Gelsinger and installed current CEO (and former Board of Directors member) Lip-Bu Tan earlier this year.

An Intel deal would be one of the largest government interventions in private industry since the U.S. auto industry's bailout under President Obama.

U.S. Commerce Secretary Howard Lutnick on Tuesday confirmed the U.S. government is vying for a 10% stake in Silicon Valley pioneer Intel in an unusual deal that would deepen the Trump administration’s financial ties with major computer chip manufacturers and punctuate a dramatic about-face from the president’s recent push to oust the company’s CEO.

A US government plan to take a stake in Intel Corp. would give the ailing chipmaker a powerful backer, even if a bigger challenge still lies ahead: finding enough paying customers.

President Donald Trump on Aug. 7 called for Intel CEO Lip Bu Tan to resign, accusing him of being “highly conflicted” over reported investments in Chinese semiconductor firms. The remarks, expressed via a post on his Truth Social network,

By Rashika Singh and Arsheeya Bajwa (Reuters) -Intel shares rose nearly 3% on Friday on hopes of more financial aid for the turnaround of the struggling chipmaker after a report that the U.S. government may buy a stake.

Despite the rocky relationship between President Donald Trump and CEO Lip-Bu Tan, the government is reportedly eyeing a stake in Intel.