Donald Trump called on Intel CEO Lip-Bu Tan to resign over China-linked investments.

The Trump administration is considering using funds from the US Chips Act to take a stake in the beleaguered American chipmaker Intel Corp., according to people familiar with the discussions.

Ryuta Makino, an analyst at Intel investor Gabelli Funds, said it was likely that the U.S. government would take a stake in Intel because Trump wants the chipmaker to expand domestic manufacturing an...