Last week, reports circulated that the Trump administration was considering a stake in embattled chipmaker Intel (INTC). Now, more details have emerged.
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The Trump administration is in talks with Intel to buy a 10% stake in the company, according to Bloomberg. The plan would convert some or all of Intel’s $10.9 billion Chips Act grant into an ownership stake, potentially making the government Intel’s largest shareholder. At current prices, a 10% stake in the company is worth about $10.5 billion.
Trump Flips on Intel CEO as Chips Act Cash Hangs in the Balance
As of January, Intel had already received $2.2 billion in grants from the Chips Act, with further grant money up for grabs upon satisfying project milestones.
Earlier this month, President Trump said Intel CEO Lip-Bu Tan “must resign, immediately” given his significant investments in Chinese chip companies. Afterward, Trump hosted Tan for a meeting at the White House and changed his tone, saying Tan’s “success and rise is an amazing story.”
INTC stock is down by about 4% following the Bloomberg report.
