On Friday, Larry Kudlow from Fox Business expressed unease regarding the Trump administration’s decision to secure a 10% stake in Intel, the prominent chip manufacturer. “I feel quite uncomfortable with this idea. Though, perhaps that’s a discussion for another time,” Kudlow remarked during a conversation with economist Stephen Moore.
Moore also shared his views on the administration’s choice, labeling it as “bad.” He expressed his distaste for “corporate welfare,” pointing out that it contrasts with the principle of privatization. “Ideally, the government should be shedding assets, not acquiring them,” he stated, criticizing one of the ideas emerging from the administration.
Trump announced that the US government now holds 10% of Intel’s shares, with the stock currently valued at approximately $11 billion. “The US hasn’t spent anything on these stocks. That’s significant for both America and Intel,” he mentioned via social media.
The White House was contacted for further comments. Commerce Secretary Howard Lutnick claimed the acquisition would support struggling American chipmakers, utilizing funds from the Biden administration’s CHIPS Act. “We’re ready to allocate the money previously committed under Biden’s administration. This approach is more equitable and beneficial for American taxpayers than just issuing grants,” Lutnick explained.
Following the announcement, Intel’s CEO, Lip-Bu Tan, took to social media to commend the agreement, stating it would bolster America’s semiconductor leadership. “We’re optimistic about future initiatives, ensuring cutting-edge technology and computing products are being developed domestically. I appreciate @potus and @howardlutnick for their trust,” he added.
This deal signifies a notable shift in Trump’s relationship with Tan, who he had previously urged to resign. On Friday, Trump recounted how the agreement materialized after his meeting with Tan. “He came in, we talked for a while, and I found him quite impressive. I believed he was somewhat a victim in all this, though I doubt he sees himself that way,” Trump shared with reporters.
He continued, recalling their exchange: “I asked him, ‘What do you know? Perhaps the US should own 10% of Intel.’ To which he replied, ‘I’ll consider that.’ So, Intel is still in a decent spot, along with other allies like [Nvidia CEO] Jensen Huang.”
