Intel shares rose about 2 per cent in extended trading on Thursday after President Donald Trump posted a favourable message about the company on Truth Social. Trump said he had just concluded a “great meeting” with Intel CEO Lip-Bu Tan, calling him highly successful and linking Intel’s recent gains to government backing.
The comments immediately drew attention from investors, reinforcing confidence in Intel’s turnaround efforts and its strategic importance to US industrial policy.
US government stake and CHIPS Act backing
In August, the US government took a 10 per cent stake in Intel through an $8.9 billion investment tied to unpaid CHIPS Act grants and additional manufacturing awards. Trump described the deal as a major win for taxpayers, claiming the government’s ownership position had already generated substantial returns.
Since the investment was announced, Intel shares have climbed roughly 75 per cent, lifting the estimated value of the government’s holding to more than $18 billion and making Washington Intel’s largest single shareholder.
Leadership change amid competitive pressure
Lip-Bu Tan became Intel’s CEO in March, replacing Pat Gelsinger after the company lost market share to rivals such as AMD and Nvidia, along with chipmakers using Arm-based designs. Despite those challenges, Intel remains a key supplier of processors for personal computers and data centre servers.
Tan has moved to reshape Intel’s strategy, including scaling back some manufacturing expansion plans in the US and Europe, while continuing to prioritise long-term domestic production.
Layoffs, factories and political scrutiny
In July, Intel announced plans to lay off thousands of employees as part of its restructuring. Its long-planned Ohio chip plant is now expected to come online in 2030 or 2031.
Trump’s relationship with Tan has been uneven. In September, he publicly called on Tan to resign, citing concerns raised by Senator Tom Cotton about Tan’s past investments in Chinese technology firms. Reuters previously reported that Tan had invested in more than 600 Chinese companies. Days later, Trump reversed course, praising Tan after a meeting, with the government investment following soon after.
Earlier this week at CES in Las Vegas, Intel announced the availability of its 18A PC chips, based on a 2-nanometre-class process. Intel said the technology is the most advanced semiconductor manufacturing process ever produced in the US, a claim Trump echoed in his latest post.
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