Trump: US to Take 10% Stake in Intel as CEO Seeks to “Keep His Job”
▼ Summary
– Intel has agreed to sell a 10% stake worth $10 billion to the US government, as announced by Donald Trump.
– The deal followed Trump’s meeting with Intel CEO Lip-Bu Tan, whom he had previously criticized for alleged ties to China.
– The idea of the US buying stakes in chipmakers was reportedly pushed in exchange for access to CHIPS Act funding.
– Senator Bernie Sanders supported the plan, arguing taxpayers deserve a return on investment from companies receiving federal grants.
– The administration plans to target only chipmakers not increasing US investments, not those like TSMC that are expanding domestically.
In a significant development for the semiconductor industry, former President Donald Trump announced that Intel has agreed to sell a 10% stake to the United States government, valued at $10 billion. The arrangement follows discussions between Trump and Intel CEO Lip-Bu Tan, who had faced previous calls for resignation over alleged ties to the Chinese Communist Party. Trump characterized the negotiation by stating that Tan entered the meeting hoping to retain his position and ultimately committed to the substantial financial arrangement.
The idea of the U.S. acquiring equity in chip manufacturers appears to have gained traction as a condition for accessing funds from the CHIPS Act, which has already received congressional approval. Commerce Secretary Howard Lutnick reportedly advocated for this approach, emphasizing that public investment should yield returns for taxpayers. Independent Senator Bernie Sanders echoed this sentiment, supporting the notion that companies benefiting from federal grants ought to provide a reasonable financial return to the public.
This strategy, however, is not intended to apply uniformly across all recipients of CHIPS funding. According to anonymous administration sources, the government does not plan to seek stakes in firms like TSMC that are already expanding their U.S. investments. Instead, the focus will likely remain on companies perceived as hesitant to increase their domestic footprint, making the Intel agreement a notable exception rather than a blanket policy. The deal underscores a broader effort to align corporate strategy with national economic priorities.
(Source: Ars Technica)
