TMTPOST -- Intel Corporation shares   jumped   as much as 8.9%   and   settled around   7.4%   higher   on Thursday after the Trump administration   was reported to consider   a rare stake acquisition   as a way   to help revive   the struggling 57-year   old   American   chipmaker.

Credit：Intel

  The Trump administration is in talks with Intel to have the U.S.   government take a stake in   the company, and the deal,   if reached, would help re-boost Intel ’ s   long-delayed   factory hub in Ohio,   Bloomberg cited   people with   knowledge   with the matter   on Thursday. While the details   are still being finalized, the plan is for the U.S. government to fund the stake,   according to one of the sources. Another source   cautioned the plan remains   fluid   so it could not to   be materialized.

  The   Wall   Street   Journal later echoed   that   the White House and Intel are discussing   the   possibility of the U.S.   government   taking a financial staike in the chipmaker. It was   reported that the ideal of stake   acquisition   is still in   early stages   and could fall apart.

Neither Intel nor the Trump administration   confirmed these reports.   "We look forward to continuing our work with the Trump administration to advance these shared priorities, but we are not going to comment on rumors or speculation," an Intel representative   said   in a statement.  

The spokesperson   repeated the   pledge Intel   made   last week,   saying the company   is "deeply committed to supporting President Trump ’ s efforts to strengthen U.S.   technology and manufacturing leadership."

"Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration," White House spokesman Kush Desai said in a statement.

While no   terms are confirmed, the reported   talks   could lead to   a   rare   instance of direct U.S. federal   government   investment in a private tech   company.  

If such a deal were to   be inked, it   could serve as a model for other investments by the Trump administration, which has been weighing opportunities to take similar stakes in various US companies in critical industries,CNN learned from people familiar with   the   White   House discussions.  

The   reports   represented   Intel ’ s rapid   evolving relationship   with Washington as Bloomberg   noted   the reported plans   stemmed   from   a White House meeting   this   week between U.S. President Donald Trump and Intel CEO Lip-Bu Tan.

Trump at Monday afternoon said he   and his   cabinet   members met with   Tan, and touted Tan ’ s success   and rise as   "an   amazing story."   He also suggested his team would talk with   Tan next week.

"I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce, Howard Lutnick, and Secretary of the Treasury, Scott Bessent," Trump posted on his Truth Social platform. "The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week."

An Intel spokesperson confirmed the meeting, describing it   involving   "candid and   constructive"   discussions.   "Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel ’ s commitment to strengthening U.S. technology and manufacturing leadership," the spokesperson wrote in an email.

Trump ’ s   comments, a   remarkable U   turn, appeared to   defuse the president ’ s   previous call   for Intel   CEO ’ s resignation and mitigate   investors ’   concerns   over   the fortune of the beleaguered    chipmaker.  

Trump on August 7 called on Tan ’ s ouster, claiming the chief   executive   is "highly conflicted". "The CEO of INTEL is highly CONFLICTED and must resign, immediately," Trump posted   on his social   media platform Truth Social. "There is no other solution to this problem. Thank you for your attention to this problem!"  

Intel, as the only U.S. company with the capability to manufacture the fastest chips on U.S. shores,   has caught Trump ’ s interest because of its strategic importance in the global trade landscape.   The   Trump   administration has been seeking ways to increase American market share in semiconductor manufacturing,   and making efforts to help   ensure Intel ’ s turnaround.

Trump has been reportedly pressuring TSMC to take over and manage Intel ’ s plants. The DigiTimes reported late February. The   Trump administration last week was reported to demand that Taiwan either to ask TSMC   to acquire a 49% stake in Intel   or to invest an additional $400 billion   in   the   United States   if it wanted to enjoy the same baseline   15% tariffs   as Japan and South Korea.

  Some industry analysts think Intel might eventually need government assistance if Tan and other executives can ’ t turn around the business.

"The greater government participation, aimed at significantly boosting U.S. chip manufacturing, could seek to push and/or encourage U.S. fabless chipmakers to leverage [ Intel's ] U.S. facilities,"   CFRA analyst Angelo Zino   commented   on Thursday.