The White House announced on Tuesday that discussions are underway regarding a potential agreement for the U.S. government to acquire a 10% stake in the semiconductor company Intel. This move is characterized by White House Press Secretary Karoline Leavitt as a step to prioritize national security and economic interests.
The proposed deal may involve exchanging government grants for shares in Intel, with U.S. Commerce Secretary Howard Lutnick stating that this approach would ensure the government receives equity in return for financial support rather than simply granting funds. Lutnick emphasized this perspective during a CNBC interview.
This initiative is aimed at bolstering Intel’s competitiveness against other major players in the chip market, particularly in the rapidly growing field of artificial intelligence (AI) chips, where competitors like Nvidia, Samsung, and TSMC are prominent. Intel has been approached for commentary on the matter.
The U.S. stake in Intel would reportedly come in exchange for grants that were approved during the Biden administration. The deal is also intended to support the establishment of a new manufacturing hub in Ohio. However, a White House spokesperson indicated that any information regarding this deal should be viewed as speculative until it is formally announced.
Intel has refrained from commenting on reports but has expressed a commitment to supporting efforts to enhance manufacturing and technology within the U.S.
Additionally, Japanese investment firm Softbank recently announced plans to purchase a $2 billion stake in Intel. Following this news, Intel’s stock experienced a nearly 7% increase in New York trading on Tuesday.
Source: https://www.bbc.com/news/articles/c620gg77epxo?at_medium=RSS&at_campaign=rss