The White House has confirmed that the Trump administration is in discussions over a deal that could give the US government a 10% stake in Intel, one of the world’s biggest chipmakers.

White House Press Secretary Karoline Leavitt said the plan is part of the president’s wider push to secure the country’s economic and security interests.

"The president wants to put America's needs first, both from a national security and economic perspective," she told reporters on Tuesday.

According to Commerce Secretary Howard Lutnick, the talks centre on an arrangement where government grants would be exchanged for Intel shares.

Lutnick explained that the administration wants a direct return on its financial support.

"We should get an equity stake for our money," he said on CNBC. "We'll get equity in return for that... instead of just giving grants away."

The deal is being positioned as a way to help Intel compete with major global rivals such as Nvidia, Samsung and Taiwan’s TSMC, particularly in the fast-growing artificial intelligence chip sector.

It would also support Intel’s planned construction of a major manufacturing hub in Ohio, a project backed by federal funding from grants approved during the Biden administration.

While reports of the stake first surfaced last week, a White House spokesperson at the time dismissed them as speculation unless officially confirmed.

Intel itself has not commented on the negotiations but last week stated it remained "deeply committed to supporting President Trump's efforts" to boost US manufacturing and technology.

The talks follow growing global interest in Intel, with Japan’s Softbank announcing on Monday that it would acquire a $2bn stake in the company.

Following the announcement and reports of US involvement, Intel’s stock rose by nearly 7% in New York trading on Tuesday.