**Trump Administration in Talks to Acquire Stake in Intel Corp**
The Trump administration is reportedly in discussions to acquire a 10% stake in Intel Corp, which would position the U.S. as the company’s largest shareholder, according to Bloomberg. This information comes from a White House official and other sources familiar with the negotiations. The government is considering converting some or all of Intel’s grants from the U.S. Chips and Science Act into equity, potentially allowing for this acquisition. Intel is set to receive a total of $10.9 billion in grants under the Chips Act for both commercial and military production, which could facilitate the desired stake.
With Intel’s current market valuation, a 10% ownership would equate to approximately $10.5 billion. However, the exact size of the stake and the White House’s decision to move forward with the plan remain uncertain, as indicated by insiders.
In a related development, SoftBank Group Corp. announced its intention to invest $2 billion in Intel shares. Despite this, the impact of government support on Intel’s business remains unclear, especially as the company grapples with stagnant sales and ongoing losses while striving to regain its technological edge in the industry. New CEO Lip-Bu Tan is focusing on cost reductions and job cuts to revitalize the company.
Following the news of potential government investment, Intel’s stock initially saw a positive response, marking its largest weekly rally since February. However, shares fell by 3.7% on Monday after reports surfaced regarding the ongoing discussions.
Last week, Tan met with Trump at the White House after the President had previously criticized him, calling for his removal due to past ties to China. Following their meeting, Trump praised Tan, describing him as having “an amazing story,” suggesting that Tan may retain his position despite earlier concerns.
If the Trump administration proceeds with acquiring an equity stake in Intel, it would align with a broader trend of Washington taking a more active role in strategic sectors. The administration has previously secured agreements related to semiconductor sales to China and acquired a “golden share” in United States Steel Corp. as part of a deal involving its sale to a Japanese competitor.
**FAQ**
**Q: What is the significance of the Trump administration acquiring a stake in Intel?**
A: Acquiring a stake in Intel would make the U.S. the largest shareholder, reflecting a strategic move to strengthen its influence in the semiconductor industry and support domestic production.
