The Trump administration and Intel (INTC) are set to announce details Friday of an agreement that would see the U.S. government take a stake in the struggling chipmaker, according to a report.
President Trump said on Friday that the U.S. government is looking to take a 10% stake in struggling chipmaker Intel. The stock rose earlier after Bloomberg reported that the Trump administration was poised to announce a government investment in the company.
The move comes after days of discussion in Washington about options for the troubled American chipmaker's future.
INTC expands cloud presence with Xeon 6, driving stronger AI, ML and data processing performance for enterprise workloads.
Unlike Intel (INTC), Taiwan Semiconductor Manufacturing Company (TSM) and Micron (MU) may not be required to give up stakes in exchange for their CHIPS Act grants, following some signs of pushback in early talks.
The Trump administration is backing away from suggestions it could take a stake in TSMC, despite its plans to demand shares in Intel.
News is starting to show up again for the United States technology sector, this time in a more unconventional manner than over the past couple of years. The United States government and other entities are starting to buy up significant stakes in one company, which is best positioned to carry on the onshoring agenda for chipmaking and semiconductor capacity for the nation.
Intel Corporation INTC and HubSpot, Inc. HUBS are two premier tech firms that are leaning heavily into AI (artificial intelligence) for sustenance. Intel, reportedly the world's largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses, such as AI and autonomous driving.
Senior officials inside the White House are weighing a plan that would make the United States government the largest single shareholder in Intel (NASDAQ:INTC ).
Intel's revival as a leading chipmaker has gained traction following Tuesday's announcement that SoftBank had taken a 2% stake in the company worth $2 billion.
Major U.S. equities indexes were mixed on Wednesday as tech stocks slid and minutes from the latest Federal Reserve meeting highlighted policymakers' concerns about tariffs and inflation.
Wall Street could be starting to sour on the terms of new deals in the works for chipmakers.