The White House is negotiating a stake in Intel to strengthen the US chip industry.

The Trump administration is in talks with Intel for the US government to acquire a stake in the chipmaker, according to Bloomberg. This move would be a significant boost to the company, which is mired in a series of trade problems, and would help expand its business in the US.

The agreement would aim to strengthen the manufacturing center Intel is developing in Ohio, according to the agency's sources. The company wants to turn that plant into the world's largest chip factory , although the project has been delayed numerous times.

The plans emerged from a meeting this week between President Donald Trump and Intel CEO Lip-Bu Tan, shortly after the magnate called for the executive's resignation . The meeting between the two, to resolve the situation, ended with the idea of the US government investing in the company to avoid Chinese influence on its developments , one of the current administration's biggest concerns. The plans are still uncertain and nothing is definitive yet, according to Bloomberg sources.

A deal would also bolster Intel's ailing finances at a time when the company has been cutting costs and has announced the layoff of 15% of its workforce ; and it would also help solidify Tan's position at the helm.

Intel declined to comment. In a statement, the company said it was "deeply committed to supporting President Trump's efforts to strengthen U.S. technology and manufacturing leadership." "We look forward to continuing our collaboration with the Trump administration to advance these priorities, but we will not comment on rumors or speculation," Intel said.

In recent years, the US government has aimed to strengthen the chip industry in the US to prevent China from further inroads into this key technology sector . Former President Joe Biden already passed a law, the so-called "Chip Act," to incentivize investment by semiconductor firms in the country. This would be a further step in government control over a priority sector for the economy and defense.