U.s. Takes 10% Stake In Intel, Trump Administration Says

The Trump management said Friday it took a 10% liking successful Intel, President Donald Trump’s latest bonzer move to exert authorities power complete business.

In an X post Friday afternoon, Commerce Secretary Howard Lutnick confirmed nan arrangement, firming up Trump’s proposal earlier successful nan time that a woody was imminent.

“BIG NEWS: The United States of America now owns 10% of Intel, 1 of our awesome American exertion companies,” Lutnick wrote. “This historical statement strengthens U.S. activity successful semiconductors, which will some turn our system and thief unafraid America’s technological edge. Thanks to Intel CEO @LipBuTan1 for striking a woody that’s adjacent to Intel and adjacent to nan American People.”

No specifications of nan statement were instantly available. Trump and different management officials had earlier suggested nan U.S. should person an ownership liking successful speech for grants Intel had received via nan 2022 CHIPS and Science Act passed during President Joe Biden’s administration. Intel is weighted astatine astir $108 cardinal connected nan banal market.

An Intel spokesperson did not instantly respond to a petition for comment.

While nan U.S. held impermanent stakes successful firms astatine nan halfway of nan 2008-2009 world financial situation arsenic portion of a bailout, nan authorities has ne'er taken an progressive ownership position successful an investor-owned firm. Congress published a study successful 2003 that examined nan effect of nan national authorities taking nonstop stakes successful nationalist companies, concluding that doing truthful would “not connection a free lunch” and expose taxpayers to “greater risk” alongside nan imaginable for upside.

Trump continues to bulldoze done specified long-held norms. It represents a departure from nan free-market ethos that has agelong prevailed successful some awesome U.S. governmental parties.

Last week, Trump convinced chipmakers Nvidia and AMD to salary nan U.S.15% of their revenues from income to China successful return for securing export licenses to that country.

While those firms person seen their fortunes emergence amid nan larger AI boom, a windfall from immoderate of them is nary judge thing. In nan lawsuit of nan California-based Intel, nan institution has struggled to support up pinch rivals amid nan AI boom, pinch shares down immoderate 60% from nan highs seen during nan Covid-19 pandemic. Trump precocious attacked its CEO, Lip-Bu Tan, demanding his resignation complete alleged ties to China, though appeared to backmost down aft a face-to-face gathering pinch Tan.

Earlier this week, Japan’s SoftBank announced it would put $2 cardinal successful Intel to “deepen their committedness to investing successful precocious exertion and semiconductor invention successful nan United States.