The Trump administration is negotiating with beleaguered Intel to acquire a government stake in the company, Bloomberg News reports citing sources familiar with the matter. Such an agreement would bolster Intel’s delayed Ohio factory hub project, according to these sources. The discussions follow President Donald Trump’s demand for the removal of Intel CEO Lip-Bu Tan, whom he labeled “highly conflicted” due to prior connections with China.
The plans stem from a meeting this week between Trump and Tan, the people said. While the details are still being sorted, the idea is for the US government to pay for the stake, one of the people said. Another cautioned that the plans remain fluid. The talks could still end without an agreement.
Shares of Intel climbed as much as 8.9% on Thursday. The stock closed 7.4% higher at $23.86 in New York, giving the company a market value of about $104.4 billion. The shares continued rising as much as 4% further after the close of regular trading.
“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” said White House spokesman Kush Desai.
Intel declined to comment on the discussions. In a statement, a representative said the company is “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership.”
“We look forward to continuing our work with the Trump administration to advance these shared priorities, but we are not going to comment on rumors or speculation,” Intel said…
A chip industry pioneer, Intel has struggled in recent years, hurt by the loss of market share and its technological edge… Earlier this year, the [Ohio factory hub] build-out was delayed until the 2030s, and the company said in July that it would further slow the Ohio plan. Since taking over in March, Tan has focused more on getting Intel’s financial house in order.
Trump has won Ohio in all three of his presidential elections, and Republicans flipped a Senate seat there in 2024. Vice President JD Vance served as a senator from the state.
MacDailyNews Take: Intel is a cautionary tale about how one bad decision can cascade into catastrophic failure.
When Intel CEO Paul Otellini passed on Apple’s iPhone: That decision has to be close to the top of the list of Biggest Business Mistakes in History. – MacDailyNews, May 17, 2013
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