The US government is preparing to take a 10 percent stake in Intel, President Donald Trump said on Friday. The news, first reported by a common news source, lifted Intel’s stock by more than 7 percent. Trump confirmed that Intel has agreed to the proposal, though the company declined to comment.
The development comes at a critical moment for the semiconductor giant. Intel’s CEO Lip-Bu Tan is currently overseeing a restructuring effort, closing certain business divisions and reducing staff as the company attempts to focus on its core operations and narrow the gap with competitors like Nvidia.
Earlier this month, Trump had urged Tan to step down over concerns about conflicts of interest. Tan later met with the president to discuss ways for Intel and the government to work together.
Speaking to the White House press pool, Trump addressed the situation directly. “I said well if that’s right he should resign and he came in and he saw me we talked for a while. I liked him a lot. I thought he was very good. I thought he was somewhat a victim but you know nobody’s a total victim I guess, and I said, you know what, I think the United States should be given 10% of Intel. And he said, I would consider that. I said, well, I’d like you to do that because Intel’s been left behind as, you know, compared to Jensen. And some of our friends at Nvidia.”
Trump added, “I said I think it would be good having the United States as your partner. He agreed. And they’ve agreed to do it and I think it’s a great deal for them and I think it’s a great deal.”
If finalised, the agreement would mark a significant shift in long-standing US economic policy, as federal government ownership of private corporations is extremely rare. The last major examples were during the 2008 and 2009 financial crisis, when the government took temporary stakes in companies such as General Motors, AIG and major banks to stabilise the economy. Those stakes were later sold back to private investors.
The announcement also follows news that Japanese company SoftBank is investing 2 billion dollars in Intel by purchasing shares at 23 dollars each. Intel stock was trading around 25 dollars on Friday afternoon.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
