Intel’s shares experienced a significant uptick following the announcement that Japanese technology investment firm Softbank plans to acquire a $2 billion stake in the U.S. computer chip manufacturer. This news surfaced shortly after reports emerged regarding discussions within the Trump administration about potentially obtaining a 10% stake in Intel by converting government grants into equity.
The proposed deal, initially reported last week, aims to support Intel’s efforts to establish a major manufacturing facility in Ohio. However, a White House spokesperson previously indicated that these reports should be viewed with caution until an official announcement is made.
Under the terms of the agreement revealed on Monday, Softbank will purchase shares from Intel at a price of $23 per share. In a joint statement, both companies noted that this investment reflects a mutual commitment to advancing technology and semiconductor innovation in the United States.
Additionally, it was reported that U.S. President Donald Trump and members of his cabinet met with Intel’s CEO Lip-Bu Tan last week. This meeting took place shortly after Trump called for Tan’s resignation, citing concerns over potential conflicts of interest due to Tan’s past connections with China.
These developments occur amidst increased scrutiny of the U.S. chip industry by the White House. Recently, Nvidia and AMD agreed to remit 15% of their Chinese revenues to the U.S. government in order to secure necessary export licenses for trade with China. The implications of these recent actions on the broader semiconductor landscape and international relationships remain to be clarified.
Source: https://www.bbc.com/news/articles/cly4vn1nxg7o?at_medium=RSS&at_campaign=rss