The U.S. government has been holding discussions on taking an equity stake in the chip maker Intel, Bloomberg and the Wall Street Journal reported on Thursday. Why it matters: A deal would be another turn by the Trump administration away from laissez-faire policies and toward state capitalism,

The Trump administration is in talks with Intel Corp. to have the US government potentially take a stake in the beleaguered chipmaker, according to people familiar with the plan, in the latest sign of the White House’s willingness to blur the lines between state and industry.

The deal talks follow President Trump’s public call for the replacement of CEO Lip-Bu Tan over his ties to Chinese businesses.