SoftBank Group has agreed to invest $2 billion in embattled chip maker Intel, a boost from the private sector that coincides with a government rescue effort.Trump administration officials are discussing taking a 10% stake in Intel in a bid to revive the company’s fortunes and bolster semiconductor manufacturing in the U.

Intel shares have jumped after Japanese technology investment giant Softbank said it is buying a $2bn (£1.5bn) stake in the US computer chip maker. The announcement came just hours after new reports that the Trump administration is in talks to take a stake of around 10% in Intel by converting government grants into shares.

The Trump administration appears to be in serious discussions about converting up to US$10.9 billion (A$16.4 billion) in CHIPS Act grants into equity in Intel. That would give Washington a 10% stake and make it the chipmaker’s largest shareholder.