Report: Trump administration discussing taking a stake in Intel
According to the Bloomberg report, the two sides were discussing a deal in which the US government would pay for a stake in the company. The White House also wants to shore up Intel’s plans to open a new manufacturing plant in Ohio.
The Trump administration is considering having the US government take a stake in struggling chipmaker Intel, Bloomberg reports.
This follows a meeting between President Donald Trump and Intel CEO Lip-Bu Tan.
According to the Bloomberg report, the two sides were discussing a deal in which the US government would pay for a stake in the company. The White House also reportedly wants to shore up Intel’s plans to open a new manufacturing plant in Ohio that has suffered multiple delays.
“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration,” White House spokesman Kush Desai said.
Intel, which was once a symbol of America’s technological prowess, warned recently that it may have to exit chip manufacturing if it fails to land external customers to make chips in its plants.
The Trump administration is looking at ways to increase the US market share in semiconductor manufacturing.
Last week, Trump wrote on his Truth Social platform that Tan should step down as CEO of Intel and claimed that he was “highly conflicted,” taking aim at Tan’s investments in Chinese tech firms.
Intel has struggled to compete with major companies like Nvidia, AMD and TSMC when it comes to designing and fabricating state-of-the-art chips driving the AI boom.
Last month Tan said that Intel was canceling plans for manufacturing factories in Germany and Poland and slowing down development in Ohio.
Experts believe that though the US government has supported a single company in the past, Intel’s history and standing in the US tech landscape make it a unique case.
“Intel is deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership,” the company said, while refusing to comment on the Bloomberg report.