Intel shares were up about 6% on the day, adding to earlier gains after reports that President Trump is set to announce the U.S. government is taking a nearly 10% stake in troubled chipmaker. The investment would cap a two-week frenzy in Washington over the future of the company.

As the Trump administration considers taking an ownership stake in Intel, Ohio's senators are expressing their support.

The unusual deal would deepen the Trump administration’s financial ties with major computer chip manufacturers and punctuate a dramatic about-face from the president’s recent push to oust the company’s CEO.

Liberal U.S. Senator Bernie Sanders on Wednesday threw his support behind President Donald Trump's plan to convert U.S. grants to chipmakers, including $10.9 billion for Intel, into government stakes in the companies.

The Trump administration is backing away from suggestions it could take a stake in TSMC, despite its plans to demand shares in Intel.

Walter Isaacson, Tulane University professor and Perella Weinberg advisory partner, criticized the proposed U.S. government stake in Intel ( NASDAQ: INTC) as a concerning form of “state capitalism.”

The White House confirmed on Tuesday that the Trump administration is working on a deal that could see the US government taking a 10% stake in chip giant Intel. "The president wants to put America's needs first, both from a national security and economic perspective," White House press secretary Karoline Leavitt told reporters.