The United States government is weighing an investment in Intel that could see Chips and Science Act grants converted into equity.

Bloomberg first reported this on Monday, citing a White House official and people familiar with the matter.

The investment under discussion would involve converting some or all of Intel’s grants from the $280 billion U.S. Chips and Science Act into equity, according to the report.

President Donald Trump, who met with Intel CEO Lip-Bu Tan on August 11, has pushed for unprecedented government tie-ups with U.S. semiconductor and rare earth companies in the name of national security.

His administration has previously floated deals with Nvidia Corp. and MP Materials to secure critical technologies and minerals.

Tan, who took over as Intel’s chief executive just over six months ago, is under pressure to turn around the struggling chipmaker.

Analysts say federal backing could give Intel much-needed breathing room to stabilize its money-losing foundry unit.

However, the company still faces a weak product roadmap and difficulties in winning new customers for its advanced manufacturing facilities.