The Trump administration is exploring the idea of acquiring shares in Intel to assist US chip manufacturers facing difficulties, according to Commerce Secretary Howard Lutnick.
Lutnick noted that funding for this stock acquisition would come from previously designated funds from the Biden administration. Reports indicate the government might pursue a 10% ownership stake through grants for chip development and scientific research.
“The president gets that America should take advantage of good deals,” he explained during an interview on CNBC’s Squawk Box.
“That’s the perspective of Donald Trump. So, why are we handing money to a company valued at $100 billion?” he continued. “What do American taxpayers get out of this? The answer Trump has is that we should receive a fair return for our investment.”
“Therefore, we will allocate funds that have already been pledged under the previous administration,” Lutnick added. “We can ensure fairness in return and provide better benefits to American taxpayers compared to issuing grants.”
Lutnick’s remarks come shortly after President Trump urged Intel CEO Rip Beau Tan to resign.
The president expressed concerns about Tan, calling him “very conflicted,” particularly following a letter from Sen. Tom Cotton that questioned the CEO’s investments in Chinese firms and his earlier involvement with a design software company.
This software firm recently admitted to breaching export regulations by selling chip design technology to a Chinese military university while Tan was at the helm.
However, following a meeting with Tan last week, Trump seemed to soften his stance and indicated that the administration might actually pursue stock in the company.
“The meeting was really insightful. His achievements are impressive,” Trump mentioned in a post about True Society. “Mr. Tan and my Cabinet will be collaborating next week to offer suggestions.”
Lutnick highlighted national security concerns regarding chip manufacturing as he discussed potential stock ownership on Monday.
“We can’t depend on Taiwan. It’s 9,500 miles from us and just 80 miles from China,” he emphasized. “Having 99% of advanced chips produced in Taiwan isn’t feasible. I want production to happen here.”
“It would be beneficial if Intel could establish a US-based production node or transistor,” Lutnick added. “It sounds great. It’s not essential, but, as I mentioned, it would create an American presence in the semiconductor sector.”
