US Government Acquires 10% Stake in Intel: A Controversial Move Sparking Debate

Intel details everything that could go wrong with US taking a 10% stake

Some investors are not happy that Intel agreed to sell the US a 10 percent stake in the company after Donald Trump attacked Intel CEO Lip-Bu Tan with a demand to resign. After Intel accepted the deal at a meeting with the president, it alarmed some investors when Trump boasted that his pressure campaign worked, claiming Tan "walked in wanting to keep his job, and he ended up giving us $10 billion for the United States." "It sets a bad precedent if the president can just take 10 percent of a company by threatening the CEO," James McRitchie, a private investor and shareholder activist in California who owns Intel shares, told Reuters. To McRitchie, Tan accepting the deal effectively sent the message that "we love Trump, we don't want 10 percent of our company taken away." McRitchie wasn't the only shareholder who raised an eyebrow. Kristin Hull, chief investment officer of a California-based activist firm called Nia Impact Capital -- which manages shares in Intel for its clients -- told Reuters she has "more questions than confidence" about how the deal will benefit investors. To her, the deal seems to blur some lines "between where is the government and where is the private sector." As Reuters explains, Intel agreed to convert $11.1 billion in CHIPS funding and other grants "into a 9.9 percent equity stake in Intel." Some early supporters of the agreement -- including tech giants like Microsoft and Trump critics like Bernie Sanders (I-Vt.) -- have praised the deal as allowing the US to profit off billions in CHIPS grants that Intel was awarded under the Biden administration. After pushing for the deal, Commerce Secretary Howard Lutnick criticized Joe Biden for giving away CHIPS funding "for free," while praising Trump for turning the CHIPS Act grants into "equity for the Trump administration" and "for the American people." But to critics of the deal, it seems weird for the US to swoop in and take stake in a company that doesn't need government assistance. The only recent precedent was the US temporarily taking stake in key companies considered vital to the economy that risked going under during the 2008 financial crisis. Compare that to the Intel deal, where Tan has made it clear that Intel, while struggling to compete with rivals, "didn't need the money," Reuters noted -- largely due to SoftBank purchasing $2 billion in Intel shares in the days prior to the US agreement being reached. Instead, the US is incentivized to take the stake to help further Trump's mission to quickly build up a domestic chip manufacturing supply chain that can keep the US a global technology leader at the forefront of AI innovation. Investors told Reuters that it's unusual for the US to take this much control over a company that's not in crisis, noting that "this level of tractability was not usually associated with relations between businesses and Washington." Intel did not immediately respond to Ars' request to comment on investors' concerns, but a spokesperson told Reuters that Intel's board has already approved the deal. In a press release, the company emphasized that "the government's investment in Intel will be a passive ownership, with no Board representation or other governance or information rights. The government also agrees to vote with the Company's Board of Directors on matters requiring shareholder approval, with limited exceptions." Intel reveals why investors should be spooked The Trump administration has also stressed that the US stake in Intel does not give the Commerce Department any board seats or any voting or governance rights in Intel. Instead, the terms stipulate that the Commerce Department must "support the board on director nominees and proposals," an Intel securities filing said. However, the US can vote "as it wishes," Intel reported, and experts suggested to Reuters that regulations may be needed to "limit government opportunities for abuses such as insider trading." That could reassure investors somewhat, Rich Weiss, a senior vice president and chief investment officer of multi-asset strategies for American Century Investments, told Reuters. Without such laws, Weiss noted that "in an unchecked scenario of government direct investing, trading in those companies could be much riskier for investors." It also seems possible that the US could influence Intel's decisions without the government explicitly taking voting control, experts suggested. "Several investors and representatives" told Reuters that the US could impact major decisions regarding things like layoffs or business shifts into foreign markets. At a certain point, Intel may be stuck choosing between corporate and national interests, Robert McCormick, executive director of the Council of Institutional Investors, told Reuters. "A government stake in an otherwise private entity potentially creates a conflict between what's right for the company and what's right for the country," McCormick suggested. Further, Intel becoming partly state-controlled risks disrupting Intel's non-US business, subjecting the company to "additional regulations, obligations or restrictions, such as foreign subsidy laws or otherwise, in other countries," Intel's filing said. In the filing, Intel confirmed directly to investors that they have good cause to be spooked by the US stake. Offering a bulleted list, the company outlined "a number of risks and uncertainties" that could "adversely impact" shareholders due to "the US Government's ownership of significant equity interests in the company." Perhaps most alarming in the short term, Intel admitted that the deal will dilute investors' stock due to the discounted shares issued to Trump. And their shares could suffer additional dilutions if certain terms of the deal are "triggered" or "exercised," Intel noted. In the long term, investors were told that the US stake may limit the company's eligibility for future federal grants while leaving Intel shareholders dwelling in the uncertainty of knowing that terms of the deal could be voided or changed over time, as federal administration and congressional priorities shift. Additionally, Intel forecasted potential legal challenges over the deal, which Intel anticipates could come from both third parties and the US government. The final bullet point in Intel's risk list could be the most ominous, though. Due to the unprecedented nature of the deal, Intel fears there's no way to anticipate myriad other challenges the deal may trigger. "It is difficult to foresee all the potential consequences," Intel's filing said. "Among other things, there could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors. There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company." Meanwhile, it's hard to see what Intel truly gains from the deal other than maybe getting Trump off its back for a bit. A Fitch Ratings research note reported that "the deal does not improve Intel's BBB credit rating, which sits just above junk status" and "does not fundamentally improve customer demand for Intel chips" despite providing "more liquidity," Reuters reported. Intel's filing, in addition to rattling investors, likely also serves as a warning sign to other companies who may be approached by the Trump administration to strike similar deals. So far, the administration has confirmed that the US is not eyeing a stake in Nvidia and seems unlikely to seek a stake in the Taiwan Semiconductor Manufacturing Company. While Lutnick has said he plans to push to make more deals, any chipmakers committing to increasing investments in the US, sources told the Wall Street Journal, will supposedly be spared from pressure to make a similar deal.

Trump: Intel Agreed to Give US Government 10% Stake in the Company

Don't miss out on our latest stories. Add PCMag as a preferred source on Google. President Trump says Intel has agreed to let the US government take a 10% stake in the company. "I said, 'I think you should pay us 10% of your company,' and they said yes," Trump claimed while speaking to reporters at the White House on Friday. "That's about $10 billion." Intel declined to comment, but this afternoon, US Commerce Secretary Howard Lutnick tweeted that, "The United States of America now owns 10% of Intel, one of our great American technology companies. This historic agreement strengthens US leadership in semiconductors, which will both grow our economy and help secure America's technological edge. Thanks to Intel CEO @LipBuTan1 for striking a deal that's fair to Intel and fair to the American People." That comes after Lutnick confirmed earlier this week that the White House was working to take a stake in Intel in exchange for the company receiving nearly $8 billion in federal subsidies from the US CHIPS Act to help it expand its manufacturing footprint. During his remarks, Trump briefly mentioned his meeting with Tan earlier this month after the president called for the executive's resignation, citing his reported ties to Chinese companies. He later backtracked. "And I said, 'I think it would be good having the United States as your partner,' and he agreed," Trump claimed. "And they've agreed to do it. And I think it's a great deal for them." Intel's CEO "walked in, wanting to keep his job. And he ended up giving us $10 billion to the United States," Trump said. "So we picked up $10 billion." According to Lutnick, taking a "non-voting" stake will enable the federal government to reap financial gains for US taxpayers. But that assumes Intel can engineer a turnaround and lift its stock value. In his Friday remarks, Trump also noted, "And we do a lot of deals like that. I'll do more of them," alluding to AMD and Nvidia's recent agreement to give the US a 15% revenue slice of the companies' AI chip sales to China. Democrats have questioned the legality of such a deal. Meanwhile, some analysts have said the US needs to do more to convince tech companies to buy chips from Intel if the Trump administration is serious about reviving the company. One controversial way Trump could do so is to tariff foreign-made semiconductors since Intel manufactures some chips in the US. Last week, Trump indicated he might impose duties as high as 300% on foreign-made chips, which could ensnare products from Apple, Nvidia, and AMD. On Friday, the president said that Intel had suffered "bad management over the years," falling behind Taiwan's TSMC. However, Trump also argued that tariffs could've salvaged the company. "Intel was the biggest, most powerful chip company in the world. And then, they started...going to foreign countries, in particular Taiwan," he said, likely alluding to major tech companies, such as AMD, Apple, Nvidia, and Qualcomm. "And if we had a president that would have said, 'Okay, you can go to Taiwan, but we're going to put a 100% tariff, or 200, or 300, or 500% tariff, anybody that sells into the United States has to pay,' they wouldn't have left," Trump added. "They wouldn't have ever left." Although Intel's chip manufacturing technology has lagged behind TSMC, it's questionable whether a tariff would've made a difference since Intel only started a major expansion into the foundry business in 2021. In the meantime, companies such as AMD, Apple, and Nvidia have or continue to use Samsung and TSMC for their contract chip manufacturing.

US government snaps up 10% of Intel for $8.9B

The funds were already allocated under the CHIPS Act and Secure Enclave program Congratulations America, your government now owns 10 percent of troubled domestic chipmaker Intel. Intel and the government announced the deal late on Friday. Under it, Intel will get $5.7 billion in grants that officials had allocated but not yet paid under former President Biden's CHIPS and Science Act. The government gave Chipzilla an additional $3.2 billion under the Secure Enclave program, which is supposed to be used to develop high-security chips for US government and military use. Intel has already received $2.2 billion in CHIPS grants so far, giving it quite the war chest. "It is my Great Honor to report that the United States of America now fully owns and controls 10% of Intel, a Great American Company that has an even more incredible future," President Trump announced on his social media site Truth Social. "I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for Intel." Indeed, Intel's shares closed the day up more than 5%, giving the company a market cap of nearly $110 billion, which would make the US government's stake worth about $11 billion. That said, the government did not pay nothing for the shares, although it used money that had already been allocated under previous programs, so no new money was spent. Intel has been desperately trying to drum up more funding as it seeks to regain its position as one of the top chipmakers in the world. The cash will give it a much-needed lifeline to rebuild its advanced chip-making capabilities and move production stateside and away from Asian vendors like TSMC. The deal also represents a personal win for the relatively new CEO, who took over in March. At the start of the month, the president was calling for Tan's resignation as he was "highly CONFLICTED," but after some frantic diplomacy he's now back in the government's good books it seems. "As the only semiconductor company that does leading-edge logic R&D and manufacturing in the US, Intel is deeply committed to ensuring the world's most advanced technologies are American made," said Tan in a statement. "President Trump's focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country's economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance US technology and manufacturing leadership." In addition to taking a 10 percent stake, the government reserves the right to buy an additional 5 percent of the company at $20 per share, a considerable discount on the current stock market price of around $25. The government won't have a seat on the board, and has said it will back the current management with "limited exceptions." "Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world," said the United States Secretary of Commerce Howard Lutnick. "As more companies look to invest in America, this administration remains committed to reinforcing our country's dominance in artificial intelligence while strengthening our national security." Rumors about the investment have circulated for a while and, on the face of it, looks like a very good deal for American taxpayers. For decades Intel has spent tens of billions propping up its share price with stock buybacks and returns to investors, while failing to get to grips with advanced chip design and manufacturing. Under the circumstances just handing them money with nothing to show for it would look like a dumb move. Now the US has a direct stake in a domestic chip company that could prove both lucrative, and also is necessary to ensure the US gets its chips from a friendly supplier in the homeland. ®

US to take 10% equity stake in Intel, in Trump's latest corporate move

WASHINGTON, Aug 22 (Reuters) - President Donald Trump said on Friday the U.S. would take a 10% stake in Intel (INTC.O), opens new tab under a deal with the struggling chipmaker that converts government grants into an equity share, the latest extraordinary intervention by the White House in corporate America. The deal puts Trump on better terms with Intel CEO Lip-Bu Tan, after the president recently said the CEO should step down due to conflicts of interest. It will ensure that the chipmaker will receive about $10 billion in funds for building or expanding factories in the U.S. Under the agreement, the U.S. will purchase a 9.9% stake in Intel for $8.9 billion, or $20.47 per share, which represents a discount of about $4 from Intel's closing share price of $24.80 on Friday. The purchase of the 433.3 million Intel shares will be made with funding from the $5.7 billion in unpaid grants from the Biden-era CHIPS Act and $3.2 billion awarded to Intel for the Secure Enclave program, also awarded under Trump's predecessor, Democratic President Joe Biden. Intel stock rose roughly 1% in the extended session on Friday after closing up 5.5% during regular trading. Trump met with Tan on Friday, a White House official said. That followed Trump's August 11 meeting with the Intel CEO after Trump demanded that Tan resign over his ties to Chinese firms. "He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion," Trump said on Friday. Commerce Secretary Howard Lutnick said on X that Tan had struck a deal "that's fair to Intel and fair to the American People." PLAYING CATCH UP The Intel investment marks the latest unusual deal with U.S. companies, including a U.S. government agreement allowing AI chip giant Nvidia NVDA.O to sell its H20 chips to China in exchange for receiving 15% of those sales. Other recent deals include an agreement for the Pentagon to become the largest shareholder in a small mining company, MP Materials (MP.N), opens new tab, to boost output of rare earth magnets and the U.S. government's winning a "golden share" with certain veto rights as part of a deal to allow Japan's Nippon Steel (5401.T), opens new tab to buy U.S. Steel. The federal government's broad intervention in corporate matters has worried critics, who say Trump's actions create new categories of corporate risk. Ahead of the U.S. deal with Intel, Japan's SoftBank (9984.T), opens new tab agreed to take a $2 billion stake in the chip maker on Monday. Some industry observers still question Intel's ability to surmount its problems. Daniel Morgan, senior portfolio manager at Synovus Trust, said Intel's problems are beyond a cash infusion from SoftBank or equity interest from the government, singling out Intel's contract chip manufacturing business, known as its foundry unit. "Without government support or another financially stronger partner, it will be difficult for the Intel foundry unit to raise enough capital to continue to build out more Fabs at a reasonable rate," he said. Intel "needs to catch up with TSMC from a technological perspective to attract business," he added. The government's stake is to be passive ownership and does not include a board seat, Intel said. The government will be required to vote with Intel's board when shareholder approval is necessary, with "limited exceptions." Intel did not specify the exceptions. The equity stake also includes a five-year warrant at $20 a share for an additional 5% of Intel stock, which the U.S. can use if Intel loses control of the foundry business. Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it ceded the AI market to Nvidia and has lost market share to Advanced Micro Devices (AMD.O), opens new tab in its central processor business for several years. It has also faced challenges in attracting customers to its new factories. Tan, who became CEO in March, has been tasked to turn around the American chipmaking icon, which recorded an annual loss of $18.8 billion in 2024 - its first such loss since 1986. The company's last fiscal year of positive adjusted free cash flow was 2021. Reporting by Aditya Soni in Bengaluru and David Shepardson, Andrea Shalal and Nandita Bose in Washington, additional reporting by Juby Babu in Mexico City and Max A. Cherney in San Francisco; Editing by Sandra Maler, Matthew Lewis and Leslie Adler Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Business * Mergers & Acquisitions * Public Policy Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

Did Trump save Intel? Not really

SAN FRANCISCO, Aug 23 (Reuters) - U.S. President Donald Trump is injecting nearly $9 billion into Intel(INTC.O), opens new tab in exchange for a 9.9% equity stake. But the money - which the struggling chipmaker was slated to receive anyway under a federal funding act - will not be enough for its contract-chipmaking business to flourish, analysts said. What Intel needs is external customers for its so-called cutting-edge 14A manufacturing process - a tough ask, at least in the short term. CEO Lip Bu Tan, who took the top job in March, warned last month that the company may have to quit the chip contracting business if it does not land any big clients. "Going forward, our investment in Intel 14A will be based on confirmed customer commitments," he said. Kinngai Chan, analyst at Summit Insights, underlined the economic rationale of Tan's message: "Intel must secure enough customers' volume to go to production for its 18A and 14A nodes to make its foundry arm economically viable," he said, referring to Intel's manufacturing processes. "We don't think any government investment will change the fate of its foundry arm if they cannot secure enough customers." The chipmaker, once synonymous with American chipmaking prowess, has stumbled due to years of management missteps, ceding its manufacturing lead to Taiwan's TSMC (2330.TW), opens new tab and losing out on the race for artificial intelligence chips to Nvidia (NVDA.O), opens new tab. Now, at an impasse, Intel needs to prove it is capable of making advanced chips to attract customers. Reuters has reported that Intel's current 18A process - less advanced than 14A - is facing problems with yield, the measure of how many chips printed are good enough to make available to customers. Large chip factories including TSMC swallow the cost of poor yields during the first iterations of the process when working with customers like Apple (AAPL.O), opens new tab. For Intel, which reported net losses for six straight quarters, that's hard to do and still turn a profit. "If the yield is bad then new customers won't use Intel Foundry, so it really won't fix the technical aspect of the company," said Ryuta Makino, analyst at Gabelli Funds, which holds Intel stock. Makino, who believes that Intel can ultimately produce chips at optimal yields, views the deal as a net negative for Intel compared with just receiving the funding under the CHIPS Act as originally promised under the Biden Administration. "This isn't free money," he said. The federal government will not take a seat on Intel's board and has agreed to vote with the company's board on matters that need shareholder approval, Intel said. But this voting agreement comes with "limited exceptions" and the government is getting Intel's shares at a 17.5% discount to their closing price on Friday. The stake will make the U.S. government Intel's biggest shareholder, though neither Trump nor Intel disclosed when the transaction would happen. Intel's shares closed up 5.5% on Friday on news of the government's equity stake, but fell 1% in post-market trading after the chipmaker detailed the terms of the deal. They have risen 23% so far this year as Tan has announced huge job cuts. 'MARGINALLY WEAKER APPETITE' The investment, the latest extraordinary intervention by the White House in corporate America, is consistent with the president's desire to boost domestic production and bring back jobs. It follows comments from Trump earlier this month calling Tan "highly conflicted" due to his ties to Chinese firms and demanding Tan's resignation. However, Trump soon changed his mind about Tan. Some analysts say Intel could benefit from the government's support, including in building out factories. Intel has said it is investing more than $100 billion to expand its U.S. factories and expects to begin high-volume chip production later this year at its Arizona plant. "To have access to capital and a new partial owner that wants to see you succeed are both important," said Peter Tuz, president of Chase Investment Counsel. The government's $8.9 billion investment is in addition to the $2.2 billion in grants Intel has received to date, making for a total investment of $11.1 billion, Intel said in a statement. The government will also receive a five-year warrant, at $20 per share for an additional five percent of Intel stock, exercisable if Intel ceases to own at least 51% of the foundry business. "On one hand, a government stake could be viewed as a strong signal that Intel is 'too big to fail.' On the other hand, people are concerned about potential governance implications and how that may impact the company's ability to act in the best interest of shareholders," Andy Li, a senior analyst at CreditSights. "The company is not receiving incremental government funding ... that indicates a marginally weaker appetite of the U.S. government to provide support." The investment follows a $2 billion infusion from SoftBank announced earlier this week. "This is a great deal for America and, also, a great deal for Intel. Building leading edge semiconductors and chips, which is what Intel does, is fundamental to the future of our nation," Trump said on Friday. Reporting by Jaspreet Singh in Bengaluru, and Max Cherney and Sayantani Ghosh in San Francisco; Additional reporting by Juby Babu in Mexico, and Lewis S. Krauskopf and Shankar Ramakrishnan in New York; Editing by Shri Navaratnam Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Legal Industry * Corporate Counsel * Capital Markets Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

Trump says Intel agreed to give US a stake in its company

WASHINGTON (AP) -- President Donald Trump said that Intel has agreed to give the U.S. government a 10% stake in its business. Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan -- which came days after the president called for Tan to resign over his past ties to China. "I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it." Intel did not immediately respond to a request for comment on the agreement. The struggling Silicon Valley chipmaker has a market cap of just over $100 billion. The agreement comes just after Japanese technology giant SoftBank Group disclosed Monday that it is accumulating its 2% stake in Intel. The official announcement is expected to come later Friday, according to a White House official who was not authorized to speak publicly ahead of an announcement and spoke on condition of anonymity. The Trump administration has been in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bar

Intel stock rises as Trump says chipmaker has agreed to sell stake to government

Lip-Bu Tan, chief executive officer of Intel Corp., departs following a meeting at the White House in Washington, DC, US, on Monday, Aug. 11, 2025. Intel shares rose about 6% on Friday after Bloomberg reported that the Trump administration is poised to announce that the U.S. government will take an equity stake in the struggling chipmaker. Following the report, President Donald Trump said the government should get about 10% of the company, which has a market cap of just over $100 billion. "They've agreed to do it and I think it's a great deal for them," Trump told reporters Friday at the White House White House official told CNBC that there will be "ongoing discussions" with Intel, adding that nothing has been decided yet and that Intel CEO Lip-Bu Tan hasn't explicitly agreed to a deal. President Trump and Tan will be meeting later this afternoon. A representative for Intel declined to comment. The move would mark the latest example of a distinct shift in U.S. industrial policy, with the government taking an active role in the corporate America. Commerce Secretary Howard Lutnick told CNBC this week that the U.S. government was seeking an equity stake in Intel in exchange for CHIPS Act funds. "We should get an equity stake for our money," Lutnick said on CNBC's "Squawk on the Street." "So we'll deliver the money, which was already committed under the Biden administration. We'll get equity in return for it." Lutnick said that the government's stake would be "nonvoting." Earlier this week, Intel announced another major backer, when SoftBank said it would make a $2 billion investment in the chipmaker, equal to about 2% of the company. Intel is the only American company capable of making the most advanced chips on U.S. shores, although its technology is seen as lagging Taiwan Semiconductor Manufacturing Company, which makes chips for companies including Apple, Nvidia, Qualcomm, AMD, and even Intel. Intel has been spending billions of dollars to build a series of chip factories in Ohio, an area the company previously called the "Silicon Heartland," where Intel would be able to produce the most advanced chips, including for AI. But in July, Tan said in a memo to employees that there would be "no more blank checks," and that it was slowing down the construction of its Ohio factory complex, depending on market conditions. Intel's Ohio factory is now scheduled to start operations in 2030. Intel said last fall that it had finalized a nearly $8 billion grant under the CHIPS and Science Act to fund its factory-building plans. The CHIPS Act was passed in 2022, under the Biden administration. -- CNBC's David Sucherman contributed to this report.

Intel will give the U.S. government a 10% stake, Trump says

The Intel headquarters in Santa Clara, California, US, on Wednesday, April 23, 2025. David Paul Morris/Bloomberg via Getty Images hide caption President Trump said on Friday he had asked Intel CEO Lip-Bu Tan for a 10% stake in the company during a recent meeting at the White House. "He agreed, and they've agreed to do it, and I think it's a great deal for them," Trump told reporters. "He walked in wanting to keep his job, and he ended up giving us $10 billion for the United States," Trump said. Neither Intel nor the White House press team immediately responded to requests for comment. But should such a deal move ahead, it would be a highly unusual step -- it would mark an escalation in the Trump administration's efforts to push chipmakers to manufacture in the United States, and a new milestone in how willing CEOs are to cede the president an unprecedented amount of control over their companies. The nature of how a deal might work is not yet clear -- and neither is the response of Intel's board or shareholders. Earlier this week, Commerce Secretary Howard Lutnick told CNBC that a potential deal for an Intel stake would convert grants to Intel from the 2022 CHIPS and Science Act into equity. The law authorized a total of nearly $53 billion in government funding for chip-related activities. "So we'll deliver the money, which was already committed under the Biden administration. We'll get equity in return for it," Lutnick said, adding the stake would not give the government voting or governance rights in Intel. Intel, once a leader in chip production, has faced a raft of problems in recent years. It has stumbled in the race to feed soaring data center demand for chips used to build artificial intelligence models known as graphics processing units, or GPUs. The leader in that field is Intel's Santa Clara, California-based neighbor Nvidia, now the world's biggest company with a market capitalization of over $4 trillion. (Earlier in August, Trump announced that Nvidia would pay the U.S. government 15% of its revenues of H20 chip sales in China in exchange for being allowed to sell them there. An Nvidia spokesperson declined to comment to NPR on the 15% figure, and in a statement, the company said it follows "rules the U.S. government sets for our participation in worldwide markets.") Intel's revenue has fallen in recent years, driving its market capitalization down. This year, the company reported net losses for the first two quarters. President Trump took direct aim at Intel CEO Tan earlier this month, calling on him to resign following reports he invested in a range of Chinese tech companies. Days later, Tan went to the White House for a face-to-face meeting with the president, after which Trump called the meeting "interesting" and Tan a "success." Intel is planning to invest more than $28 billion in two chip production facilities in Ohio, but the plans have been delayed and analysts say it is unclear if there will be sufficient demand for the chips the company eventually produces. "One of the questions that we still haven't seen answers to yet in the public sphere, at least, is how this discussion about equity financing relates to the question of who's going to be the customer for Intel's factories that are being built and their processes or their manufacturing processes that are being brought online," said Chris Miller, a professor at Tufts University and the author of Chip War: The Fight for the World's Most Critical Technology. "That's a key part of the puzzle," he said, adding it was too early to know if a potential equity deal would be a boon for Intel or complicate the company's efforts to try to lead the field again.

Trump says Intel has agreed to give US government a 10% stake

Unprecedented deal comes after president demanded CEO Lip-Bu Tan to resign over his ties to Chinese firms The US government has taken an unprecedented 10% stake in Intel under a deal with the struggling chipmaker and is planning more such moves, according to Donald Trump and commerce secretary Howard Lutnick, the latest extraordinary intervention by the White House in corporate America. Lutnick wrote on X: "BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies. Thanks to Intel CEO @LipBuTan1 for striking a deal that's fair to Intel and fair to the American People." Trump met with Lip-Bu Tan on Friday and posed for a photo with Lutnick. The development follows a meeting between Tan and Trump earlier this month that was sparked by the US president's demand for the Intel chief's resignation over his ties to Chinese firms. "He walked in wanting to keep his job and he ended up giving us $10bn for the United States. So we picked up $10bn," Trump said on Friday. While Trump did not provide detail on the $10bn, the equity stake is about equal to the amount Intel is set to receive in grants from the government under the Chips and Science Act to help fund the building of chip plants in the US. The Intel investment would be the latest of several unusual deals struck by the Trump administration with US companies, including agreeing to allow AI chip giant Nvidia to sell its H20 chips to China in exchange for the US government receiving 15% of those sales. Chipmaker AMD struck a similar deal. The Pentagon is also slated to become the largest shareholder in a small mining company to boost output of rare-earth magnets and the US government negotiated for itself a "golden share" with certain veto rights as part of a deal to allow Nippon Steel to buy US Steel. The US government's broad intervention in corporate matters has worried critics who say Trump's actions create new categories of corporate risk. Trump's move follows a $2bn capital injection from SoftBank Group in what was a major vote of confidence for the troubled US chipmaker in the middle of a turnaround. Synovus Trust senior portfolio manager Daniel Morgan said Intel's problems are beyond a cash infusion from SoftBank or equity interest from the government. "Without government support or another financially stronger partner, it will be difficult for Intel foundry unit to raise enough capital to continue to build out more Fabs at a reasonable rate," he said, adding Intel "needs to catch up with TSMC [Taiwan Semiconductor Manufacturing Company] from a technological perspective to attract business". A 10% stake at current share prices would be worth roughly $10bn. Lutnick said this week any stake would be non-voting, meaning it would not enable the US. government to tell the company how to run its business. Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product roadmap and challenges in attracting customers to its new factories. Tan, who took the top job at Intel in March, has been tasked to turn around the American chipmaking icon, which recorded an annual loss of $18.8bn in 2024 - its first such loss since 1986.

Intel receives $5.7 billion from the Trump administration

Intel is now a partially state-owned company. The technology company which designs and manufactures computer chips, among other components, has received $5.7 billion in cash as part of its investment deal with U.S. President Donald Trump, Reuters reported. Last week, Intel announced an agreement with the U.S. government that allows Washington to take a 10% stake in the ailing company's once-formidable business. The $8.9 billion sum from the Trump administration renders the U.S. the largest stakeholder in Intel. However, the federal government is a passive stakeholder, meaning it has no governance rights, such as a seat on the company's board of directors. The Trump administration negotiated an additional 5% warrant, should Intel cease to own more than 51% of its contract manufacturing business, according to Reuters. The government's investment in Intel comes at a time when the former tech giant is falling behind rivals like Nvidia in the global AI chipmaking race. In June, Intel announced layoffs as part of a cost cutting drive. The deal converts some or all of the grants allocated to the company under the U.S. bipartisan Chips and Science Act into equity, Bloomberg reported. Intel was granted a combined $10.9 billion in grants under the act for commercial and military manufacturing, which former President Joe Biden signed into law in 2022. The funding under the CHIPS Act was meant to be dispersed over time and directed to fortify Intel's domestic computer chip manufacturing with new projects including a new Ohio plant. The new agreement is unusual given the U.S.'s traditional emphasis on free market capitalism. Washington has mostly avoided taking direct stakes in privately-run companies, but Trump has been at ease widening government authority into the private sector throughout his second term. He had initially demanded that Intel fire its CEO, Lip Bu-Tan, over his past ties to the Chinese military. Historically, the U.S. government eschewed outright intervention in the economy, except in special cases of enormous peril -- such as when it took temporary stakes in automakers and large banks during the 2008 financial crisis. Now, the U.S., under President Donald Trump, joins China in its promotion of "national champions," multinational companies in strategic sectors that advance their government's national interests. The Semiconductor Manufacturing International Corporation (SMIC) is viewed as China's advanced chip-making champion. The government's stake in Intel is President Donald Trump's latest attempt to intervene in the chipmaking industry. Earlier in August, the U.S. government announced a deal that would have two of Intel's rivals, Nvidia and Advanced Micro Devices, pay 15% of their revenues from sales in China. -- Joseph Zeballos-Roig and Alex Daniel contributed to this article.

Trump's Intel deal has already gioven the government a $1.9 billion gain on paper

President Donald Trump on Friday announced the U.S. government has secured a 10% stake in struggling Silicon Valley pioneer Intel in a deal that was completed just a couple weeks after he was depicting the company's CEO as a conflicted leader unfit for the job. "The United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future," Trump wrote in a post. The U.S. government is getting the stake through the conversion of $11.1 billion in previously issued funds and pledges. All told, the government is getting 433.3 million shares of non-voting stock priced at $20.47 apiece -- a discount from Friday's closing price at $24.80. That spread means the U.S. government already has a gain of $1.9 billion, on paper. The remarkable turn of events makes the U.S. government one of Intel's largest shareholders at a time that the Santa Clara, California, company is in the process of jettisoning more than 20,000 workers as part of its latest attempt to bounce back from years of missteps taken under a variety of CEOs. Intel's current CEO, Lip-Bu Tan, has only been on the job for slightly more than five months, an d earlier this month, it looked like he might be on shaky ground already after some lawmakers raised national security concerns about his past investments in Chinese companies while he was a venture capitalist. Trump latched on to those concerns in an August 7 post demanding that Tan resign. But Trump backed off after the Malaysian-born Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, leading to a deal that now has the U.S. government betting that the company is on the comeback trail after losing more than $22 billion since the end of 2023. Trump hailed Tan as "highly respected" CEO in his Friday post. In a statement, Tan applauded Trump for "driving historic investments in a vital industry" and resolved to reward his faith in Intel. "We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership," Tan said. Intel's current stock price is just slightly above where it was when Tan was hired in March and more than 60% below its peak of about $75 reached 25 years ago when its chips were still dominating the personal computer boom before being undercut by a shift to smartphones a few years later. The company's market value currently stands at about $108 billion - a fraction of the current chip kingpin, Nvidia, which is valued at $4.3 trillion. The stake is coming primarily through U.S. government grants to Intel through the CHIPS and Science Act that was started under President Joe Biden's administration as a way to foster more domestic manufacturing of computer chips to lessen the dependence on overseas factories. But the Trump administration, which has regularly pilloried the policies of the Biden administration, saw the CHIPs act as a needless giveaway and is now hoping to make a profit off the funding that had been pledged to Intel. "We think America should get the benefit of the bargain," U.S. Commerce Secretary Howard Lutnick said earlier this week. "It's obvious that it's the right move to make." About $7.8 billion had been been pledged to Intel under the incentives program, but only $2.2 billion had been funded so far. Another $3.2 billion of the government investment is coming through the funds from another program called "Secure Enclave." Although U.S. government can't vote with its shares and won't have a seat on Intel's board of directors, critics of the deal view it as a troubling cross-pollination between the public and private sectors that could hurt the tech industry in a variety of ways. For instance, more tech companies may feel pressured to buy potentially inferior chips from Intel to curry favor with Trump at a time that he is already waging a trade war that threatens to affect their products in a potential scenario cited by Scott Lincicome, vice president of general economics for the Cato Institute. "Overall, it's a horrendous move that will have real harms for U.S. companies, U.S. tech leadership, and the U.S. economy overall," Lincicome posted Friday. The 10% stake could also intensify the pressure already facing Tan, especially if Trump starts fixating on Intel's stock price while resorting to his penchant for celebrating his past successes in business. Nancy Tengler, CEO of money manager Laffer Tengler Investments, is among the investors who abandoned Intel years ago because of all the challenges facing Intel. "I don't see the benefit to the American taxpayer, nor do I see the benefit, necessarily to the chip industry," Tengler said while also raising worries about Trump meddling in Intel's business. "I don't care how good of businessman you are, give it to the private sector and let people like me be the critic and let the government get to the business of government.," Tengler said. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. The U.S. government's stake in Intel coincides with Trump's push to bring production to the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Even before gaining the 10% stake in Intel, Trump had been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are powering the AI craze, to pay a 15% commission on their sales of chips in China in exchange for export licenses.

Trump says Intel agreed to give the government 10% of the chipmaker. 'We do a lot of deals like that. I'll do more of them'

President Donald Trump said Friday that American chipmaker Intel had agreed to give the U.S. government a 10% stake, which amounts to roughly $10 billion. "They've had some bad management over the years and they got lost. I said 'I think you should pay us 10% of your company,' and they said 'yes.' That's about $10 billion. I don't get it, this comes to the United States of America," he said in a press conference with reporters in the Oval Office. Intel was previously allocated about $11 billion in grants to build out manufacturing in the U.S. under the CHIPS and Science Act passed by Congress during the Biden administration. Under the new agreement with Trump, the government will take equity in return for the grant money allocated to Intel through the CHIPS Act, the New York Times reported. The government will not be involved with company governance or claim a board seat, the Times reported. Commerce Secretary Howard Lutnick has previously outlined plans for the U.S. government to receive equity in return for the CHIPS Act cash grants Intel has received. "We should get an equity stake for our money, so we'll deliver the money which was already committed under the Biden administration," Lutnick told CNBC earlier this week. Trump claimed the agreement came after a conversation with Intel CEO Lip-Bu Tan, whom he previously called on to resign in a post on his social media website Truth Social. Trump said Friday he called for Tan's ouster because of a letter Sen. Tom Cotton (R-Ark.) sent to Intel's chairman, expressing concern about Tan's ties to Chinese companies. Following Trump's post, Tan traveled to Washington for a meeting with Trump last week. "He walked in wanting to keep his job and he ended up giving us $10 billion for the American people," Trump said Friday. The Intel agreement comes as the Trump administration has shown a recent willingness to take on a more interventionist role with U.S. companies. As a condition of the merger between Nippon Steel and U.S. Steel, the administration demanded to name a board member to the combined entity and secured a "golden share" giving it veto power over company decisions. The U.S. also recently reached a revenue-sharing agreement with chipmakers Nvidia and AMD, giving the government 15% of sales generated through AI chip sales in China as part of its terms for granting export licenses to the companies. Treasury Secretary Scott Bessent said last week similar agreements could be expanded to other industries. Some Republicans, including Sen. Rand Paul (R-Ky.), have criticized Trump's plan for the U.S. government to take a stake in Intel. "If socialism is government owning the means of production, wouldn't the government owning part of Intel be a step toward socialism? Terrible idea," Paul wrote Wednesday in a post on X. Still, Trump was undeterred by the criticism and noted Friday that the government will continue its interventionist path as long as the agreements don't hurt the U.S. military or security. "We do a lot of deals like that. I'll do more of them," he said.

US weighs equity stakes in chipmakers under CHIPS Act, but Nvidia off the table

The Trump administration's move to take a 10% stake in Intel has intensified debate over whether CHIPS and Science Act subsidies could be linked to equity ownership, fueling concerns about deeper government intervention in the semiconductor sector and the potential impact on other US chipmakers. Reuters reported growing speculation that Micron Technology and GlobalFoundries could face similar treatment. GlobalFoundries pushed back, stressing that its CHIPS Act funding is proceeding "as normal" and carries no equity conditions. At Deutsche Bank's technology conference, GlobalFoundries CFO John Hollister said the company will continue receiving subsidies tied to milestone achievements. He added that GlobalFoundries has raised its 2025 investment plan to US$16 billion, with an extra US$1 billion in capex and US$3 billion for R&D to support long-term technology development and capacity expansion. Signed into law by former President Joe Biden in 2022, the CHIPS Act is designed to bolster US semiconductor production and reduce dependence on Asian suppliers, including Taiwan's TSMC. US Treasury Secretary Scott Bessent told Fox Business's Mornings with Maria Bartiromo that the government has no plans to take a stake in Nvidia, saying the AI chip leader requires no financial support. He added, however, that a similar intervention could be pursued in other industries such as shipbuilding. Before the Intel deal, the Trump administration had already intervened in corporate transactions, taking a so-called "golden share" in Nippon Steel's planned acquisition of US Steel, and requiring Nvidia and AMD to hand over 15% of their China AI chip sales in exchange for export approvals. The measures highlight Washington's layered strategy for semiconductor self-sufficiency, blending direct investment with regulatory pressure, while calibrating its role based on the strategic weight and financial standing of each company. Article edited by Jack Wu

Trump says U.S. government taking a 10% stake in tech giant Intel

President Trump said that Intel has agreed to give the U.S. government a 10% stake in its business. Speaking with reporters on Friday, Mr. Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan -- which came days after the president called for Tan to resign over his past ties to China. "I said, I think it would be good having the United States as your partner," Mr. Trump said. "He agreed, and they've agreed to do it." Intel did not immediately respond to a request for comment on the agreement. In a social media post Friday afternoon, Commerce Secretary Howard Lutnick indicated that the deal had been finalized, but did not elaborate. "The United States of America now owns 10% of Intel, one of our great American technology companies," Lutnick wrote. "This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America's technological edge." Lutnick also thanked Tan "for striking a deal that's fair to Intel and fair to the American People." The struggling Silicon Valley chipmaker has a market cap of just over $100 billion. The agreement comes just after Japanese technology giant SoftBank Group disclosed Monday that it is accumulating its 2% stake in Intel. The Trump administration has been in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under former President Joe Biden. With a 10% stake, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. In a Truth Social post early Friday evening, Mr. Trump wrote that it was his "Great Honor to report that the United States of America now fully owns and controls 10% of INTEL." Trump added that the U.S. "paid nothing for these Shares, and the Shares are now valued at approximately" $11 billion. In his second term, Mr. Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Mr. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Earlier this month, the president called on Tan to resign less than five months after the Santa Clara, California, company had hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Mr. Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program.

Trump says Intel agreed to give US a stake in its company

WASHINGTON -- President Donald Trump said that Intel has agreed to give the U.S. government a 10% stake in its business. Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan -- which came days after the president called for Tan to resign over his past ties to China. "I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it." Intel did not immediately respond to a request for comment on the agreement. The struggling Silicon Valley chipmaker has a market cap of just over $100 billion. The agreement comes just after Japanese technology giant SoftBank Group disclosed Monday that it is accumulating its 2% stake in Intel. The official announcement is expected to come later Friday, according to a White House official who was not authorized to speak publicly ahead of an announcement and spoke on condition of anonymity. The Trump administration has been in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bar

Trump says Intel agreed to give US a stake in its company

WASHINGTON (AP) -- President Donald Trump said that Intel has agreed to give the U.S. government a 10% stake in its business. Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan -- which came days after the president called for Tan to resign over his past ties to China. "I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it." Intel did not immediately respond to a request for comment on the agreement. The struggling Silicon Valley chipmaker has a market cap of just over $100 billion. The agreement comes just after Japanese technology giant SoftBank Group disclosed Monday that it is accumulating its 2% stake in Intel. The official announcement is expected to come later Friday, according to a White House official who was not authorized to speak publicly ahead of an announcement and spoke on condition of anonymity. What's happening? The Trump administration has been in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. Why would Trump do this? In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Didn't Trump want Intel's CEO to quit? That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." Why would Intel do a deal? The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Would this deal be unusual? Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Would the government run Intel? U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. What government grants does Intel receive? Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bar

Trump says Intel has agreed to give U.S. a 10% stake in the struggling tech company

U.S. President Donald Trump on Thursday demanded the immediate resignation of new Intel CEO Lip-Bu Tan, calling him "highly conflicted" due to his ties to Chinese firms. President Donald Trump announced on Aug. 22 that the U.S. government has taken a 10% stake in Intel, the struggling U.S. chipmaker company. "It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future," wrote Trump in a Truth Social post. "I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company." At various points during the day, Trump said the U.S. shares would be valued at $10 and $11 billion, without providing details. "The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars," he wrote. "This is a great Deal for America and, also, a great Deal for INTEL." Earlier, during an Oval Office meeting, he told reporters the value of the shares would be worth $10 billion. Intel is expected to receive about $10 billion in CHIPS Act grants from the government to help fund the building of chip plants in the U.S., which makes it roughly equivalent to the value of U.S. shares, according to Reuters. Just two weeks ago, Trump had called for the Intel CEO's resignation citing alleged connections to China and decribed him as "highly CONFLICTED" in a Truth Social post. But after subsequently meeting with Tan on Aug. 11, Trump said he'd "liked him a lot." "I told him, I think the United States should be given 10% of Intel," said Trump. "I said I think it would be good having the United States as your partner. He agreed." The Intel investment would be the latest of several unusual deals with U.S. companies, including agreeing to allow AI chip giant Nvidia to sell its H20 chips to China in exchange for the U.S. government receiving 15% of those sales. Commerce Secretary Howard Lutnick called the deal a "historic agreement." "(It) strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America's technological edge," he wrote on X. The Pentagon is also slated to become the largest shareholder in a small mining company to boost output of rare earth magnets and the U.S. government negotiated for itself a "golden share" with certain veto rights as part of a deal to allow Nippon Steel to buy U.S. Steel. The U.S. government's broad intervention in corporate matters has worried critics who say Trump's actions create new categories of corporate risk. Democratic Sen. Mark warner of Virgina, a co-author of the CHIPS and Science Act, said given the administration's recent approach to other high-profile technology transactions, Congress "must apply thorough scrutiny for potential conflicts of interest or undue interference in private-sector decisions unrelated to national security," in a statement. "Taking an equity stake in Intel may or may not be the right approach, but one thing is clear: allowing cutting-edge chips to flow to China without restraint will erode the value of any investment we make here at home," he said.

Trump says Intel agreed to give US a stake in its company

WASHINGTON (AP) -- President Donald Trump said that Intel has agreed to give the U.S. government a 10% stake in its business. Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan -- which came days after the president called for Tan to resign over his past ties to China. "I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it." Intel did not immediately respond to a request for comment on the agreement. The struggling Silicon Valley chipmaker has a market cap of just over $100 billion. The agreement comes just after Japanese technology giant SoftBank Group disclosed Monday that it is accumulating its 2% stake in Intel. The official announcement is expected to come later Friday, according to a White House official who was not authorized to speak publicly ahead of an announcement and spoke on condition of anonymity. What's happening? The Trump administration has been in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. Why would Trump do this? In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Didn't Trump want Intel's CEO to quit? That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." Why would Intel do a deal? The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Would this deal be unusual? Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Would the government run Intel? U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. What government grants does Intel receive? Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bar

Trump Says Intel Agreed to Give US a Stake in Its Company

WASHINGTON (AP) -- President Donald Trump said that Intel has agreed to give the U.S. government a 10% stake in its business. Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan -- which came days after the president called for Tan to resign over his past ties to China. "I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it." The official announcement is expected to come later Friday, according to a White House official who was not authorized to speak publicly ahead of an announcement and spoke on condition of anonymity. What's happening? The Trump administration has been in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. Why would Trump do this? In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Didn't Trump want Intel's CEO to quit? That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." Why would Intel do a deal? The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Would this deal be unusual? Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Would the government run Intel? U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. What government grants does Intel receive? Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bar

Trump Says Intel Agreed To Give U.S. A Stake In Its Company

Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story."

Trump stunning reversal on Intel weeks after demanding chip giant CEO Lip-Bu Tan's resignation. All about the deal

The United States government has acquired a 10 per cent holding in Intel and this marks one of the most striking federal interventions in a private company since the 2008 auto bailouts. US President Donald Trump announced the agreement on Friday, describing the deal as "a great partnership for America and for Intel." US Secretary of Commerce Howard Lutnick Friday said that the federal government will take a 10% stake in US chipmaker Intel. "This historic agreement strengthens US leadership in semiconductors, which will both grow our economy and help secure America's technological edge," Lutnick wrote on X in a post accompanied by a photo of himself with Intel CEO Lip-Bu Tan. President Donald Trump revealed the deal earlier on Friday during remarks in the Oval Office, calling it a "great deal for them". Shares of the Santa Clara, California-based chipmaker soared more than 5% on Friday. Intel said in a statement that the US government would make a $8.9bn (£6.6bn) investment in Intel common stock. Trump posted Friday on Truth Social, "It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future. I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter." ALSO READ: Trump faces big blow as judge orders Alligator Alcatraz to shut down in 60 days, no new inmates. Know the reason However, earlier this month, Trump demanded that Intel CEO must resign, just less than five months after the Santa Clara, California, company hired him. The call followed reports raising national security concerns about Tan's past investments in Chinese tech firms while he was a venture capitalist. But Trump reversed course after Tan affirmed his loyalty to the US in a letter to employees and later met with the president at the White House, where Trump praised him for having an "amazing story." Trump said that Intel will give the US government 10 percent stake in the company, an agreement he said followed a meeting last week with CEO Lip-Bu Tan -- just days after Trump had called for Tan's resignation over his past ties to China. "I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it." Intel said in a statement that the government's planned stake in the company will be a passive investment, with no board seats or special governance rights. The government agreed to vote in line with Intel's board on shareholder matters, except in limited circumstances, the company said. ALSO READ: 'Escape to Epstein Island, Diddy Party': Roblox, facing shutdown rumours, was called 'perfect place for pedophiles' "The government's investment in Intel will be a passive ownership, with no Board representation or other governance or information rights. The government also agrees to vote with the Company's Board of Directors on matters requiring shareholder approval, with limited exceptions," the statement read. Lip-Bu Tan, CEO of Intel, said in Friday's statement, "As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world's most advanced technologies are American made. President Trump's focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country's economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership." Intel has struggled in recent years to build out more chip capacity and has fallen far behind rival Nvidia whose market cap has soared past the $4tn mark while Intel's has languished around $100bn. ALSO READ: $5,108 SSDI August payment confirmed but not everyone will receive it: Check if you qualify The US government is getting the stake through the conversion of $11.1 billion in previously issued funds and pledges. To put it in simple terms, the government is getting 433.3 million shares of non-voting stock priced at $20.47 apiece- a discount from Friday's closing price at $24.80. The company said the deal "reflects the confidence the Administration has in Intel to advance key national priorities" and reaffirmed its commitment to provide secure semiconductors to the Defense Department. Trump in his second term has sought to re-sought the chip industry, requiring Nvidia and Advanced Micro Devices to pay a 15% commission on sales to China in exchange for export licenses.Trump's bid for a stake in Intel underscores his push to boost US chip production -- an anchor of his global trade war strategy. He argues that cutting dependence on overseas manufacturing will strengthen America's position against China in the race for artificial intelligence dominance.

'Trump Wasn't Hired To Run A Hedge Fund,' Says Peter Schiff As Intel Deal Divides Experts Amid Calls To Break Taiwan Dependence For Chips - NVIDIA (NASDAQ:NVDA), Intel (NASDAQ:INTC)

Economists and tech analysts are divided over President Donald Trump's decision to give the U.S. government a 10% stake in Intel Corporation INTC, with some calling it unconstitutional and others praising it as crucial for national security and semiconductor independence. Trump Announces Historic Intel Stake Intel shares climbed in after-hours trading on Friday after Trump took to Truth Social to reveal that the U.S. now "fully owns and controls 10% of Intel," valued at about $11 billion. Trump said he negotiated the deal with CEO Lip-Bu Tan, declaring it a "great deal for America" that would cement the country's leadership in advanced chip manufacturing. Intel also confirmed that the stake includes an $8.9 billion investment funded by $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from the Secure Enclave program. The government's investment brings its total support to Intel to $11.1 billion. This development follows SoftBank Group's SFTBF SFTBY recent $2 billion investment in Intel, which secured the Japanese conglomerate an approximately 2% stake in the chipmaker. See Also: Under AMD, Qualcomm Competitive Heat, Intel Gets Hit With Fitch Credit Downgrade Schiff Blasts Move As 'Unconstitutional' Economist Peter Schiff criticized the equity purchase, warning it erodes free-market principles. "The U.S. Govt. taking a 10% stake in $INTC is not only unconstitutional, it's a bad idea," Schiff posted on X, formerly Twitter. "Trump wasn't hired to run a hedge fund. This sets a very bad precedent as it moves our nation further away from free-market capitalism." When asked, isn't it better to invest rather than give billions in grants, Schiff replied, "We shouldn't do that either. But we don't want the government to buy into private businesses." Newman Defends Strategic Investment Daniel Newman, CEO of Futurum Group, argued the move is vital for U.S. technology leadership. "Funny to see some of the same people that cheered about 'Chips Act Grants' losing their minds about the government investing in INTC," Newman wrote on X. "Being able to manufacture leading-edge chips independent of Taiwan is existential. Or risk falling behind in AI and falling behind as the world's economic leader." Earlier this week, Commerce Secretary Howard Lutnick stressed the importance of producing chips in the U.S. rather than relying on Taiwan, home to Taiwan Semiconductor Manufacturing Co. TSM and just 80 miles from China. As per reports, TSMC is responsible for producing over 90% of the world's most advanced computer chips. Trump's Involvement In The Broader Semiconductor Market The announcement underscores Trump's semiconductor strategy, which includes 100% tariffs on foreign-made chips unless companies commit to U.S. manufacturing. The administration has touted investments from Nvidia Corporation NVDA and Intel as national security victories. Notably, just earlier this month, Trump demanded Intel CEO Tan's immediate resignation after reports surfaced regarding his alleged ties to China. Price Action: Intel stock closed up 1.05% in after-hours trading on Friday, according to Benzinga Pro. According to Benzinga's Edge Stock Rankings, INTC continues to display an upward price trend across short, medium and long-term periods. Additional performance details are available here. Read Next: Bill Gates Commits Majority Of $200 Billion Foundation Budget To Africa Over Next 20 Years Amid Trump's Massive USAID Cuts Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$234.052.96%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum81.50Growth87.98Quality95.31Value50.42Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Trump Says 10% Stake In Intel Is A Done Deal - Intel (NASDAQ:INTC)

Intel Corp. INTC stock climbed more than 6% on Friday after President Donald Trump said the government should acquire roughly a 10% stake in the struggling chipmaker. Waiting For Official Announcement President Trump told reporters at the White House that Intel had agreed to the deal, according to CNBC. "They've agreed to do it, and I think it's a great deal for them," Trump said. However, a White House official cautioned that discussions with Intel are still ongoing and that no final decision has been made. Read Next: President Trump Worth More Than $5.5 Billion After $100 Million In Bond Purchases While In Office According to the official, Intel CEO Lip-Bu Tan has not committed to the proposal, though he is scheduled to meet with Trump later on Friday. An Intel spokesperson declined to comment. The potential investment would highlight a notable shift in U.S. industrial strategy, with Washington playing a more direct role in private enterprise. Commerce Secretary Howard Lutnick said earlier this week that the government wants equity in Intel in return for federal support under the CHIPS Act. "We should get an equity stake for our money," Lutnick said on CNBC's "Squawk on the Street." "So we'll deliver the money, which was already committed under the Biden administration. We'll get equity in return for it." The news comes just days after SoftBank announced a separate $2 billion investment in Intel, giving the Japanese conglomerate about a 2% stake. Domestic Chip Supply Intel remains the only U.S. company capable of producing the world's most advanced semiconductors domestically. However, it continues to lag behind Taiwan Semiconductor Manufacturing Company (TSMC), supplier to major firms such as Apple, Nvidia, Qualcomm, AMD, and even Intel itself. The company has been pouring billions into new factories in Ohio -- an effort it once branded the "Silicon Heartland" -- with hopes of eventually producing state-of-the-art AI chips there. Read Next: Retail Investors' Top Stocks With Earnings This Week: Faraday Future, XPeng, Walmart And More Photo: Shutterstock INTCIntel Corp$25.147.00%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum43.51Growth16.75QualityN/AValue74.85Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Intel Stock Investors Just Got Surprising News From President Trump. It Builds on an Unusual Trend That Started With Nvidia. | The Motley Fool

The U.S. government has taken a substantial stake in semiconductor company Intel, but the deal raises concerning questions for investors. President Trump in early August called for Intel (INTC -0.81%) CEO Lip-Bu Tan to resign because of ties with the Chinese Communist Party. But he has since changed his tune, so much so that the U.S. government recently took a 9.9% stake in the struggling semiconductor company, buying 433.3 million shares at $20.47 per share. Intel stock advanced more than 5% when the deal was announced on Friday, Aug. 22. But President Trump days earlier struck an equally unusual revenue-sharing deal with Nvidia, and several pundits and politicians are concerned by his decision to further blur the line between the public and private sectors. Here's what investors should know. Intel has lost substantial market share in central processing units (CPUs) in recent years because of a combination of execution missteps and competitors releasing better products. Most notably, serious problems with its 10-nanometer process technology lead to repeated delays between 2015 and 2020, allowing rival foundry Taiwan Semiconductor to become the most advanced chip manufacturer. Intel accounted for virtually all data center server CPU shipments in 2016, but its market share in that category has since declined to 63% as Advanced Micro Devices and Arm Holdings have gained ground. Likewise, Intel accounted for roughly 90% of personal computer CPU shipments in 2016, but its market share in that category has since fallen to 66% as the same competitors have stolen customers. Consequently, Intel's non-GAAP earnings have fallen from $2.72 per diluted share in 2016 to negative $4.77 per diluted share over the last 12 months. Meanwhile, the stock is down 30% since January 2017. Worse yet, Bank of America analysts expect the company to keep losing share in coming years as companies rely more heavily on alternative CPUs, especially custom chips built on Arm architecture. Intel in 2021 announced plans to become a major provider of external foundry services (contract chipmaking) in the United States and Europe. Initially, that comprised a $20 billion investment to build two semiconductor fabrication facilities in Arizona, but was later expanded to include an additional $20 billion investment in plants in Ohio. Intel last year repeated its "goal of becoming the world's second-largest foundry by 2030," but it has struggled to execute. Chip production in Ohio was initially slated to begin in 2025, but the company is now at least five years behind schedule after repeated delays. Nevertheless, Intel remains the largest American semiconductor manufacturer and the only domestic company that both designs and makes leading-edge logic chips. Against that backdrop, the U.S. government's decision to take a 9.9% stake in Intel seems sensible. It provides much-needed cash -- Intel burned $11 billion in the last year and has only $21 billion on its balance sheet -- and credibility that could help the company establish itself as a key chip manufacturer in the artificial intelligence era. Importantly, that outcome aligns with Trump's push to revitalize American manufacturing, something he sees as critical to national security. Intel CEO Lip-Bu Tan said, "President Trump's focus on U.S. chip manufacturing is driving historic investments in a vital industry to the country's economic and national security." Similarly, U.S. Commerce Secretary Howard Lutnick commented, "As more companies look to invest in America, this administration remains committed to reinforcing our country's dominance in artificial intelligence while strengthening our national security." Intel certainly appears more credible with the U.S. government as a significant shareholder, but some analysts remain skeptical about its plans to become a leading foundry. John Vinh at KeyBanc says Intel has such an abysmal track record that customers are unlikely to trust the company with important projects. "Intel is not going to pick up any sort of meaningful business," he told Yahoo! Finance. Also, several politicians have criticized President Trump's decision to take a stake in Intel. Sen. Rand Paul (R-Ky.) wrote, "If socialism is government owning the means of production, wouldn't the government owning part of Intel be a step toward socialism?" And former presidential candidate Nikki Haley said, "This will only lead to more government subsidies and less productivity. Intel will become a test case of what not to do." Similarly, Rep. Thomas Massie (R-Ky.) told Fox Business, "Conflicts of interest arise when the government gets in bed with private companies: Intel is now more likely to cooperate with government intrusion into private computing, and government regulatory agencies are more likely to play favorites with Intel." President Trump is willing to make similar deals with other companies, but the Intel deal alone raises some worrisome questions. Will the U.S. government push American companies like Nvidia and AMD to rely solely on Intel for foundry services? Is Intel now subject to the whims of whichever political party is in power? Would the government retaliate if Intel made business decisions it deems unwise? Here is the bottom line: The Trump administration has created a conflict of interest where the government has a clear incentive to act in a manner that benefits Intel. Any future deals would only create more conflicts of interest. So investors should pay very close attention as this unprecedented situation unfolds.

Trump says Intel agreed to give U.S. a stake in its company

WASHINGTON -- U.S. President Donald Trump said that Intel has agreed to give the U.S. government a 10 per cent stake in its business. Speaking with reporters on Friday, Trump said the deal came out of a meeting last week with Intel CEO Lip Bu Tan -- which came days after the president called for Tan to resign over his past ties to China. "I said, I think it would be good having the United States as your partner," Trump said. "He agreed, and they've agreed to do it." The official announcement is expected to come later Friday, according to a White House official who was not authorized to speak publicly ahead of an announcement and spoke on condition of anonymity. The Trump administration has been in talks to secure a 10 per cent stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15 per cent commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." The company isn't commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly US$19 billion last year and another US$3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25 per cent reduction from the end of last year. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly US$50 billion into General Motors in return for a roughly 60 per cent stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly US$10 billion loss after it sold its stock in GM. U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company's chips. Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the program. The company has received about US$2.2 billion of the US$7.8 billion pledged under the incentives program -- money that Lutnick derided as a "giveaway" that would better serve U.S. taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bar

Trump turns US$11.1B in U.S. government funds into a 10% stake in downtrodden Intel

WASHINGTON - U.S. President Donald Trump on Friday announced the U.S. government has secured a 10 per cent stake in struggling Silicon Valley pioneer Intel in a deal that was completed just a couple weeks after he was depicting the company's CEO as a conflicted leader unfit for the job. "The United States of America now fully owns and controls 10 per cent of INTEL, a Great American Company that has an even more incredible future," Trump wrote in a post. The U.S. government is getting the stake through the conversion of US$11.1 billion in previously issued funds and pledges. All told, the government is getting 433.3 million shares of non-voting stock priced at $20.47 apiece -- a discount from Friday's closing price at $24.80. That spread means the U.S. government already has a gain of $1.9 billion, on paper. The remarkable turn of events makes the U.S. government one of Intel's largest shareholders at a time that the Santa Clara, California, company is i n the process of jettisoning more than 20,000 workers as part of its latest attempt to bounce back from years of missteps taken under a variety of CEOs. Intel's current CEO, Lip-Bu Tan, has only been on the job for slightly more than five months, an d earlier this month, it looked like he might be on shaky ground already after some lawmakers raised national security concerns about his past investments in Chinese companies while he was a venture capitalist. Trump latched on to those concerns in an August 7 post demanding that Tan resign. But Trump backed off after the Malaysian-born Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, leading to a deal that now has the U.S. government betting that the company is on the comeback trail after losing more than $22 billion since the end of 2023. Trump hailed Tan as "highly respected" CEO in his Friday post. In a statement, Tan applauded Trump for "driving historic investments in a vital industry" and resolved to reward his faith in Intel. "We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership," Tan said. Intel's current stock price is just slightly above where it was when Tan was hired in March and more than 60 per cent below its peak of about $75 reached 25 years ago when its chips were still dominating the personal computer boom before being undercut by a shift to smartphones a few years later. The company's market value currently stands at about $108 billion - a fraction of the current chip kingpin, Nvidia, which is valued at $4.3 trillion. The stake is coming primarily through U.S. government grants to Intel through the CHIPS and Science Act that was started under President Joe Biden's administration as a way to foster more domestic manufacturing of computer chips to lessen the dependence on overseas factories. But the Trump administration, which has regularly pilloried the policies of the Biden administration, saw the CHIPs act as a needless giveaway and is now hoping to make a profit off the funding that had been pledged to Intel. "We think America should get the benefit of the bargain," U.S. Commerce Secretary Howard Lutnick said earlier this week. "It's obvious that it's the right move to make." About $7.8 billion had been been pledged to Intel under the incentives program, but only $2.2 billion had been funded so far. Another $3.2 billion of the government investment is coming through the funds from another program called "Secure Enclave." Although U.S. government can't vote with its shares and won't have a seat on Intel's board of directors, critics of the deal view it as a troubling cross-pollination between the public and private sectors that could hurt the tech industry in a variety of ways. For instance, more tech companies may feel pressured to buy potentially inferior chips from Intel to curry favor with Trump at a time that he is already waging a trade war that threatens to affect their products in a potential scenario cited by Scott Lincicome, vice president of general economics for the Cato Institute. "Overall, it's a horrendous move that will have real harms for U.S. companies, U.S. tech leadership, and the U.S. economy overall," Lincicome posted Friday. The 10 per cent stake could also intensify the pressure already facing Tan, especially if Trump starts fixating on Intel's stock price while resorting to his penchant for celebrating his past successes in business. Nancy Tengler, CEO of money manager Laffer Tengler Investments, is among the investors who abandoned Intel years ago because of all the challenges facing Intel. "I don't see the benefit to the American taxpayer, nor do I see the benefit, necessarily to the chip industry," Tengler said while also raising worries about Trump meddling in Intel's business. "I don't care how good of businessman you are, give it to the private sector and let people like me be the critic and let the government get to the business of government.," Tengler said. Although rare, it's not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60 per cent stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. The U.S. government's stake in Intel coincides with Trump's push to bring production to the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Even before gaining the 10 per cent stake in Intel, Trump had been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are powering the AI craze, to pay a 15 per cent commission on their sales of chips in China in exchange for export licenses.

Has Trump saved Intel, one of Ireland's largest employers? | BreakingNews.ie

US president Donald Trump is injecting nearly $9 billion (€7.7 billion) into Intel in exchange for a 9.9 per cent equity stake. But the money - which the struggling chipmaker was slated to receive anyway under a federal funding act - will not be enough for its contract-chipmaking business to flourish, analysts said. What Intel needs is external customers for its so-called cutting-edge 14A manufacturing process - a tough ask, at least in the short term. Chief executive Lip Bu Tan, who took the top job in March, warned last month that the company may have to quit the chip contracting business if it does not land any big clients. "Going forward, our investment in Intel 14A will be based on confirmed customer commitments," he said. Kinngai Chan, analyst at Summit Insights, underlined the economic rationale of Tan's message: "Intel must secure enough customers' volume to go to production for its 18A and 14A nodes to make its foundry arm economically viable," he said, referring to Intel's manufacturing processes. "We don't think any government investment will change the fate of its foundry arm if they cannot secure enough customers." Intel employs nearly 5,000 people across Ireland, with the majority based in Leixlip, Co Kildare. It has been a key employer here since 1989, quickly becoming the base for all European manufacturing operations. Almost 200 mandatory redundancies are expected this autumn at the Leixlip plant as part of a wider restructuring process. The chipmaker, once synonymous with American chipmaking prowess, has stumbled due to years of management missteps, ceding its manufacturing lead to Taiwan's TSMC and losing out on the race for artificial intelligence chips to Nvidia. Now, at an impasse, Intel needs to prove it is capable of making advanced chips to attract customers. Reuters has reported that Intel's current 18A process - less advanced than 14A - is facing problems with yield, the measure of how many chips printed are good enough to make available to customers. Large chip factories including TSMC swallow the cost of poor yields during the first iterations of the process when working with customers like Apple. For Intel, which reported net losses for six straight quarters, that's hard to do and still turn a profit. "If the yield is bad then new customers won't use Intel Foundry, so it really won't fix the technical aspect of the company," said Ryuta Makino, analyst at Gabelli Funds, which holds Intel stock. Makino, who believes that Intel can ultimately produce chips at optimal yields, views the deal as a net negative for Intel compared with just receiving the funding under the CHIPS Act as originally promised under the Biden Administration. "This isn't free money," he said. The federal government will not take a seat on Intel's board and has agreed to vote with the company's board on matters that need shareholder approval, Intel said. But this voting agreement comes with "limited exceptions" and the government is getting Intel's shares at a 17.5 per cent discount to their closing price on Friday. The stake will make the US government Intel's biggest shareholder, though neither Trump nor Intel disclosed when the transaction would happen. Intel's shares closed up 5.5 per cent on Friday on news of the government's equity stake, but fell 1 per cent in post-market trading after the chipmaker detailed the terms of the deal. They have risen 23 per cent so far this year as Tan has announced huge job cuts. The investment, the latest extraordinary intervention by the White House in corporate America, is consistent with the president's desire to boost domestic production and bring back jobs. It follows comments from Trump earlier this month calling Tan "highly conflicted" due to his ties to Chinese firms and demanding Tan's resignation. However, Trump soon changed his mind about Tan. Some analysts say Intel could benefit from the US government's support, including in building out factories. Intel has said it is investing more than $100 billion to expand its US factories and expects to begin high-volume chip production later this year at its Arizona plant. "To have access to capital and a new partial owner that wants to see you succeed are both important," said Peter Tuz, president of Chase Investment Counsel. The government's $8.9 billion investment is in addition to the $2.2 billion in grants Intel has received to date, making for a total investment of $11.1 billion, Intel said in a statement. The government will also receive a five-year warrant, at $20 per share for an additional five percent of Intel stock, exercisable if Intel ceases to own at least 51 per cent of the foundry business. "On one hand, a government stake could be viewed as a strong signal that Intel is 'too big to fail.' On the other hand, people are concerned about potential governance implications and how that may impact the company's ability to act in the best interest of shareholders," Andy Li, a senior analyst at CreditSights. "The company is not receiving incremental government funding ... that indicates a marginally weaker appetite of the U.S. government to provide support." The investment follows a $2 billion infusion from SoftBank announced earlier this week. "This is a great deal for America and, also, a great deal for Intel. Building leading edge semiconductors and chips, which is what Intel does, is fundamental to the future of our nation," Trump said on Friday.