US Government Poised to Acquire 10% Stake in Intel
The U.S. government is preparing to take a 10% ownership stake in Intel, according to President Donald Trump. The news, initially reported by Bloomberg, quickly boosted Intel’s stock by more than 7% on Friday. Trump confirmed that Intel had agreed to the proposal, though the company itself has declined to comment.
Intel at a Critical Crossroads
The announcement comes at a time of significant transition for Intel. CEO Lip-Bu Tan has been leading a restructuring effort, closing down select divisions and implementing layoffs to refocus the company on its core chipmaking business. The goal is to regain competitive ground against industry leaders such as Nvidia.
Earlier in the month, Trump publicly pressured Tan to resign due to what he described as conflicts of interest. Following this, Tan met with Trump in an effort to ease tensions and explore opportunities for closer collaboration between the U.S. government and Intel.
Trump’s Perspective on Intel
Speaking with the White House press pool, Trump acknowledged his earlier push for Tan’s resignation, while also offering praise:
“I said well if that’s right he should resign and he came in and he saw me we talked for a while. I liked him a lot. I thought he was very good. I thought he was somewhat a victim but you know nobody’s a total victim I guess, and I said, you know what, I think the United States should be given 10% of Intel. And he said, I would consider that. I said, well, I’d like you to do that because Intel’s been left behind as, you know, compared to Jensen. And some of our friends at Nvidia.”
Trump added:
“I said I think it would be good having the United States as your partner. He agreed. And they’ve agreed to do it and I think it’s a great deal for them and I think it’s a great deal.”
A Rare Move in U.S. Policy
Federal ownership of private corporations remains an uncommon and controversial measure in the U.S. Historically, the government has avoided direct equity stakes in companies, with exceptions during the 2008-2009 financial crisis. At that time, the government took temporary stakes in General Motors, AIG, and several major banks to avert systemic collapse. Those investments were gradually sold back to private investors over the subsequent years.
If completed, this Intel deal would mark one of the most significant federal corporate ownership moves in recent history.
SoftBank’s Parallel Investment
The U.S. government’s potential stake follows closely after a $2 billion investment in Intel by Japanese conglomerate SoftBank. Under that agreement, SoftBank purchased Intel stock at $23 per share, framing the deal as a commitment to U.S. technological advancement and semiconductor production. By Friday afternoon, Intel’s shares were trading near $25.
Looking Ahead
The deal with the U.S. government is expected to be formally announced later Friday. As the global semiconductor race intensifies, this unusual partnership could reshape Intel’s strategic direction while raising broader debates about the role of government in private industry.
0 Comments