Shares of Intel rose over 7% on Thursday amid reports that the Trump administration is exploring the possibility of acquiring a stake in the chipmaker. This potential deal is viewed as a means to bolster Intel’s plans for a manufacturing hub in Ohio, although the exact size of the proposed stake remains unclear, according to Bloomberg.
White House spokesman Kush Desai emphasized that discussions about potential deals should be treated as speculative unless officially confirmed by the administration. This news follows a meeting between Intel CEO Lip-Bu Tan and former President Trump, during which Trump had previously expressed concerns regarding Tan’s ties to China.
Reports indicate that Intel declined to comment on the matter, while affirming its commitment to supporting efforts aimed at enhancing U.S. technology and manufacturing leadership. The discussions surrounding the stake and its pricing are still in progress, with analysts suggesting that government involvement could provide Intel with necessary funding and support.
Intel has faced challenges in recent years, particularly in the rapidly evolving AI sector, leading to a significant decline in its market value. A collaboration with the government could potentially reflect a shift toward greater private-public partnerships in the U.S., similar to practices observed in other countries like China.
Furthermore, other semiconductor companies such as Nvidia and AMD have recently engaged in agreements that involve sharing revenue with the U.S. government. Analysts note that while it may be contentious for some to support Intel directly, the company’s role as a major player in the semiconductor manufacturing space makes it strategically important for the U.S.
Intel’s planned factory in Ohio, which aims to become the world’s largest semiconductor facility, has faced delays but is seen as crucial to its future. Although there is speculation about the nature of the government’s potential stake, the situation underscores the heightened importance of maintaining domestic semiconductor production capabilities in light of global competition.
Source: https://www.bbc.com/news/articles/cpv01pl208lo?at_medium=RSS&at_campaign=rss