Trump Announces US Government Stake in Intel
President Donald Trump revealed on Friday that the US government plans to secure a 10% ownership stake in Intel as part of a new agreement.
During a recent statement, Trump mentioned, “He walked, wanting to continue his work and ultimately gave the US $10 billion.”
This development stemmed from a meeting between Trump and Intel CEO Lip-Bu Tan, following Trump’s call for Tan to resign due to his connections with Chinese companies.
According to reports, this arrangement comes after SoftBank Group made a substantial $2 billion investment, signaling confidence in a US chipmaker that’s been facing challenges during a turnaround phase.
Analysts suggest that federal support could provide Intel with crucial breathing room to revitalize its struggling casting business, although it still faces hurdles such as an unclear product roadmap and difficulties in attracting customers to new manufacturing sites.
Trump is actively pursuing government investments in semiconductors and rare earth materials, including stakes in companies like Nvidia and MP Materials.
Howard Lutnick, the Chief of the Commerce Bureau, stated, “We should gain stock interests for money.”
“So we’re delivering money that was already committed under the Biden administration. We’ll get fair value in return for that.”
According to reports, the Chips Act, enacted by President Joe Biden in 2022, aims to bolster the US semiconductor sector and lessen dependency on foreign chip manufacturers. However, despite funding efforts, Intel has seen substantial layoffs and challenges in growth.
Intel, along with other significant US chip producers, is pushing for government assistance to increase its domestic production capacity. The company has previously announced plans for considerable investments in new chip manufacturing plants in the US, including a $20 billion initiative for two factories in Arizona. Yet, Intel has postponed significant projects in Ohio’s “Silicon Heartland.”
“It’s not governance. We’re just converting grants under Biden into the Trump administration, for the American people.”
