Treasury Secretary Scott Bessent said the White House wouldn't try to flex its power with a stake in Intel.

Asked about reports that the U.S. was considering taking a 10% stake in Intel, Bessent told CNBC's "Squawk Box" program: "The stake would be a conversion of the grants and maybe increase the investment into Intel to help stabilize the company for chip production here in the U.S."

The White House confirmed on Tuesday that the Trump administration is working on a deal that could see the US government taking a 10% stake in chip giant Intel. "The president wants to put America's needs first, both from a national security and economic perspective," White House press secretary Karoline Leavitt told reporters.

Money might not be the solution to Intel Corp.’s problems.

Money earmarked for semiconductor company under Chips Act could be converted into equity

Intel shares are trading marginally lower Monday. The stock is digesting significant gains fueled by reports that the Trump administration is exploring a direct financial stake.

SoftBank’s billionaire founder Masayoshi Son held talks with Intel’s chief executive about buying its faltering contract chipmaking business in the weeks before Monday’s announcement that the Japanese company would invest $2bn in the US group’s shares.