Luria said such a deal is needed to revive Intel and reduce the country's reliance on companies like Samsung and TSMC to manufacture chips.

The U.S. government's stake in Intel would help fund factories it's currently building in Ohio, according to the report.

Talks for an undisclosed stake come days after President Donald Trump called for Intel’s CEO to resign.

The plan stems from a meeting between CEO Lip-Bu Tan and Trump, who had demanded he resign over his Chinese investments.

Luria said such a deal is needed to revive Intel and reduce the country's reliance on companies like Samsung and TSMC to manufacture chips.

Uncle Sam buying an equity stake in Intel is unlikely to solve the chipmaker's underlying problems, according to Bernstein.