The US authorities is taking a ten p.c stake in In...

President Donald Trump says the US authorities is taking a ten p.c stake in chip maker Intel. Trump shared the information throughout a press conference on Friday, although an official announcement remains to be forthcoming, Reuters reports. Information of a plan to transform Intel’s beforehand promised CHIPS Act funding into fairness within the firm was first reported earlier in August.

A meeting between Intel CEO Lip-Bu Tan and Trump following the President’s call for Tan to resign appears to be the supply of the deal. “He walked in wanting to maintain his job and he ended up giving us 10 billion {dollars} for the US. So we picked up 10 billion,” Trump shared throughout the press convention.

Primarily based on Intel’s present share worth, a ten p.c stake could be value round $10 billion, Reuters says. It is vital to notice that the federal government investing in Intel is just not the identical factor as receiving free cash, it is the precise reverse. The federal government’s stake in Intel can even be non-voting, in line with earlier comments from US Commerce Secretary Howard Lutnick.

Intel was speculated to obtain up to $10.86 billion in federal funding to develop its chip manufacturing enterprise within the US as a part of the CHIPS Act. By agreeing to this deal, Tan is probably going making an attempt to guarantee that funding nonetheless goes by way of, one in every of a number of drastic strikes to maintain Intel afloat. Tan assumed the title of CEO following Pat Gelsinger’s sudden retirement in 2024. Since taking up, he is already dedicated to cutting Intel’s workforce by 20 p.c. Even with decrease prices and assured funding, the corporate’s future remains to be unsure: Intel is reportedly struggling to make its next-gen Panther Lake chips at scale.

The Trump administration says it won’t seek similar equity deals with different recipients of CHIPS Act funding. That hasn’t stopped them from making different equally unprecedented monetary preparations. NVIDIA and AMD reportedly struck a cope with the US authorities that provides the businesses the flexibility to export merchandise to China in trade for 15 p.c of their income.