Intel stock was down 3.9% after Bloomberg reported that the Trump administration could convert Chips Act grants into a 10% equity stake in Intel.

The Trump administration is considering taking a 10% stake in Intel by converting $10.9B in Chips Act grants into equity, a move that would make the U.S. government Intel’s largest shareholder and mark a major shift in how federal chip funding is deployed.

T rump administration officials are discussing taking a 10% stake in Intel as part of a government effort to rescue the embattled chip maker and bolster semiconductor manufacturing in the U.S., according to people briefed on the talks.