US President wants to buy Intel shares

The Trump administration is reportedly in talks to buy a stake in Intel to support a chip factory project in Ohio to compete with China.

Intel CEO Lip-Bu Tan leaves the White House on August 11, after a meeting. Photo: Alex Wroblewski/Bloomberg .

The Trump administration is in talks with Intel Corp. to buy a stake in the chipmaker, according to unnamed sources, to support Intel’s plans to build a giant chip factory in Ohio.

The talks come just a week after President Donald Trump called for the ouster of Intel CEO Lip-Bu Tan, citing concerns about his past ties to China.

The discussions, which stem from a meeting between Mr. Trump and Mr. Tan, are still in the preliminary stages and are unlikely to result in a final agreement. While the size of the government’s stake has not been determined, the plan is for the U.S. government to use its budget to buy back the shares.

After the information was revealed, Intel's stock surged, closing the trading session with a 7.4% increase to $23.86 , bringing the company's market capitalization to about $104.4 billion .

A simulated image of Intel's plans to build two advanced chip factories in Ohio. Photo: Intel.

“Discussions about hypothetical deals should be considered speculative until they are formally announced by the administration,” White House spokesman Kush Desai told reporters.

Intel declined to comment on the rumors but said it is “deeply committed to supporting President Trump’s efforts to strengthen America’s leadership in technology and manufacturing.”

The potential deal is seen as the latest example of the Trump administration’s direct intervention in key industries, following an agreement to receive 15% of revenue from certain semiconductor sales to China and to take a “golden share” in United States Steel Corp.

Similarly, the US Department of Defense recently announced the acquisition of $400 million in preferred shares in rare earth producer MP Materials, making the Pentagon the company's largest shareholder.

These moves signal a new approach to the relationship between government and the private sector, in which the administration seeks to promote domestic companies in areas seen as critical to national security and competitiveness with China.

For Intel, the government investment would be a significant financial boost amid the company's struggles. Once a pioneer in the chip industry, Intel has recently faced a loss of market share and technological advantage.

The Ohio plant expansion is a key part of the company’s turnaround strategy, but has been repeatedly delayed due to financial problems. The potential deal also suggests Mr. Tan is likely to remain at the helm, despite Mr. Trump’s previous comments.

The government’s new investment strategy is said to be based on the agreement with MP Materials, which includes equity investment, product purchase guarantees, loans and private sector financing. Some government officials see this as a way to build investor confidence.

Source: https://znews.vn/tong-thong-donald-trump-muon-mua-co-phan-intel-post1577116.html