Trump Administration Seeks 10% Stake in Intel, Signaling Shift in US Industrial Policy

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.

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.

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 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 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.

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 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 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

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