TMTPOST -- Intel Corporation shares jumped as much as 8.9% and settled around 7.4% higher on Thursday after the Trump administration was reported to consider a rare stake acquisition as a way to help revive the struggling 57-year old American chipmaker.
Credit：Intel
The Trump administration is in talks with Intel to have the U.S. government take a stake in the company, and the deal, if reached, would help re-boost Intel’s long-delayed factory hub in Ohio, Bloomberg cited people with knowledge with the matter on Thursday. While the details are still being finalized, the plan is for the U.S. government to fund the stake, according to one of the sources. Another source cautioned the plan remains fluid so it could not to be materialized.
The Wall Street Journal later echoed that the White House and Intel are discussing the possibility of the U.S. government taking a financial staike in the chipmaker. It was reported that the ideal of stake acquisition is still in early stages and could fall apart.
Neither Intel nor the Trump administration confirmed these reports. "We look forward to continuing our work with the Trump administration to advance these shared priorities, but we are not going to comment on rumors or speculation," an Intel representative said in a statement.
The spokesperson repeated the pledge Intel made last week, saying the company is “deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership.”
“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration,” White House spokesman Kush Desai said in a statement.
While no terms are confirmed, the reported talks could lead to a rare instance of direct U.S. federal government investment in a private tech company.
If such a deal were to be inked, it could serve as a model for other investments by the Trump administration, which has been weighing opportunities to take similar stakes in various US companies in critical industries,CNN learned from people familiar with the White House discussions.
The reports represented Intel’s rapid evolving relationship with Washington as Bloomberg noted the reported plans stemmed from a White House meeting this week between U.S. President Donald Trump and Intel CEO Lip-Bu Tan.
Trump at Monday afternoon said he and his cabinet members met with Tan, and touted Tan’s success and rise as “an amazing story.” He also suggested his team would talk with Tan next week.
“I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce, Howard Lutnick, and Secretary of the Treasury, Scott Bessent,” Trump posted on his Truth Social platform. “The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week.”
An Intel spokesperson confirmed the meeting, describing it involving “candid and constructive” discussions. “Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel’s commitment to strengthening U.S. technology and manufacturing leadership,” the spokesperson wrote in an email.
Trump’s comments, a remarkable U turn, appeared to defuse the president’s previous call for Intel CEO’s resignation and mitigate investors’ concerns over the fortune of the beleaguered chipmaker.
Trump on August 7 called on Tan’s ouster, claiming the chief executive is “highly conflicted”. "The CEO of INTEL is highly CONFLICTED and must resign, immediately," Trump posted on his social media platform Truth Social. "There is no other solution to this problem. Thank you for your attention to this problem!"
Intel, as the only U.S. company with the capability to manufacture the fastest chips on U.S. shores, has caught Trump’s interest because of its strategic importance in the global trade landscape. The Trump administration has been seeking ways to increase American market share in semiconductor manufacturing, and making efforts to help ensure Intel’s turnaround.
Trump has been reportedly pressuring TSMC to take over and manage Intel’s plants. The DigiTimes reported late February. The Trump administration last week was reported to demand that Taiwan either to ask TSMC to acquire a 49% stake in Intel or to invest an additional $400 billion in the United States if it wanted to enjoy the same baseline 15% tariffs as Japan and South Korea.
Some industry analysts think Intel might eventually need government assistance if Tan and other executives can’t turn around the business.
"The greater government participation, aimed at significantly boosting U.S. chip manufacturing, could seek to push and/or encourage U.S. fabless chipmakers to leverage [Intel's] U.S. facilities," CFRA analyst Angelo Zino commented on Thursday.
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