The Trump administration is in discussions to take a stake of about 10% in Intel Corp., according to a White House official and other people familiar with the matter, in a move that could see the United States become the beleaguered chipmaker’s largest shareholder.

The federal government is considering a potential investment in Intel that would involve converting some or all of the company’s grants from the U.S. Chips and Science Act into equity, said the people, who asked not to be identified because the information is confidential. Intel has been slated to receive a combined $10.9 billion in Chips Act grants for commercial and military production.

That figure is roughly enough to pay for the targeted holding. At Intel’s current market value, a 10% stake in the chipmaker would be worth

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