Intel shares soar 7% amid possible US government investment
Kyiv • UNN
Intel shares rose 7% after reports that the Trump administration was discussing acquiring a stake in the company. This is related to plans to revive American chip manufacturing and Intel's Ohio plant.
Intel shares rose more than 7% after reports that the administration of US President Donald Trump is discussing a possible acquisition of a stake in the company to support the production of American chips. This is reported by UNN with reference to Financial Time.
Intel shares jumped more than 7% on Thursday after reports that the Trump administration was discussing an unusual move to acquire a stake in the company as part of a plan to revive the struggling American chipmaker.
"The proposal came after Trump met with Intel CEO Lip-Bu Tan earlier this week," according to one person familiar with the discussion.
The source warned that details were still being worked out and talks could fall apart.
Addition
The Intel talks, first reported by Bloomberg, came after chipmakers Nvidia and AMD struck a deal that would allow them to sell more advanced artificial intelligence chips in China in exchange for offering the government a share of sales revenue.
Earlier this year, the administration also took a so-called golden share in US Steel as a condition for allowing its acquisition by Japan's Nippon Steel, giving Washington veto power over critical decisions.
Intel declined to comment on the talks, but said: "Intel is deeply committed to supporting President Trump's efforts to strengthen US leadership in technology and manufacturing. We look forward to continuing our work with the Trump administration."
White House spokesman Kush Desai emphasized that "discussions of hypothetical deals should be viewed as speculation unless the administration officially announces them."
Tan met with Trump along with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent on Monday. Trump praised Tan after the meeting and said his administration would hold talks with Intel and "provide me with proposals within the next week."
Reason for cooperation
According to the source, a decisive factor in the decision to cooperate with Intel was Trump's desire to revive the company's plant in Ohio.
In 2022, Intel announced that this plant could become the world's largest semiconductor manufacturing facility, but its launch dates have been repeatedly delayed. Tan took over the company in March after Pat Gelsinger, who had invested heavily in manufacturing and was dismissed by Intel's board of directors.
An injection of capital from Washington could help restore production momentum and ease financial pressure on the company, which is already cutting costs and jobs.
Intel's manufacturing unit has suffered billions in losses due to the difficulties of competing with Taiwan's TSMC. Last month, Tan announced that the company was abandoning suspended manufacturing projects in Germany and Poland and slowing down construction of the Ohio plant to reduce losses.