Intel’s shares rose more than 7% on Thursday after reports that the Trump administration is in talks to take a stake in the US chipmaker.

Bloomberg reported that the move would back Intel’s plan to develop a major manufacturing hub in Ohio, though the size of any potential stake remains unclear.

A White House spokesman declined to confirm the talks, saying speculation should not be taken as fact unless officially announced. Intel also declined to comment, but said it was committed to supporting US efforts to strengthen domestic technology and manufacturing.

The report follows a meeting earlier this week between Intel chief executive Lip-Bu Tan and President Trump, who has accused Mr Tan of being “highly conflicted” over his past ties to China.

Analysts say government backing could provide Intel with crucial financial support as it struggles to catch up in the race for advanced chips. “Some will see it as unfair that Intel is being propped up, but most will agree it is strategically vital for the US,” said David Nicholson of The Futurum Group.

Intel’s market value has fallen by more than half since 2020, to $104bn, amid delays to its flagship Ohio project and fierce competition from Nvidia and other rivals.

Experts say any government stake is unlikely to be a majority holding, but would give Washington influence over a company seen as central to national security and America’s chipmaking ambitions.