The Trump administration played a pivotal role in Intel’s recent resurgence, prompting major tech companies like Apple , Nvidia , and SpaceX to establish partnerships with the chipmaker, the Wall Street Journal reported on Friday.
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According to the publication, President Donald Trump and Commerce Secretary Howard Lutnick encouraged Apple CEO Tim Cook last year to utilize Intel’s manufacturing capabilities during discussions about potential tariffs on semiconductor imports.
In return, Apple secured a tariff exemption by committing to expand its investments in the United States, and it now plans to have Intel produce chips for several Mac and iPhone products, the Journal reported, citing a source familiar with the negotiations.
Furthermore, the administration converted $9 billion in federal grants into a 10% equity stake in Intel, becoming the company’s largest shareholder. This marked an unprecedented level of government involvement in an American tech firm.
Since the arrival of CEO Lip-Bu Tan in March 2025, Intel’s stock has more than quadrupled. According to the newspaper, the recovery is driven by a combination of factors, including rising demand for central processing units, government backing, and Tan’s restructuring efforts.
Journal sources indicate that administration officials also facilitated partnerships with Nvidia and Elon Musk’s SpaceX, while maintaining regular contact with Intel’s leadership to monitor the company’s progress and expand its production capacity.
Beyond government support, Tan reorganized Intel’s engineering divisions, recruited executives from competitors such as Samsung and SK Hynix, and redirected capital expenditures toward manufacturing equipment to boost output of in-demand chips.
This support also strengthened Intel’s financial standing. In addition to government investments, Nvidia poured $5 billion into the company, and SoftBank added another $2 billion, allowing Intel to maintain its capital expenditure levels without resorting to cuts.
Intel reported a 22% year-over-year revenue increase in its data center segment for the first quarter, reaching $5.1 billion, driven by demand for Xeon processors, though the company still posted a net loss for the quarter.
Google Cloud also announced a major order for Intel Xeon processors, citing performance improvements under Tan’s leadership, the publication noted.
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