Days after Intel CEO talks Trump called ‘highly conflicted,’ the federal government is reportedly negotiating a stake in the chips champion

This type of direct government investment in the technology giant represents a remarkable exit from the most obvious approach that almost all previous US administrations prefer. Traditionally, the federal support for the chips industry came mainly in the form of grants or subsidies, such as that designated under the Chips law. Trump’s approach appears to prefer direct stocks, echoing the recent White House movements in other sectors, such as the federal government that takes a “golden share” while allowing Nippon Steel to obtain the American steel, and buy the Ministry of Defense $ 400 million of favorite stocks in MP materials, and the rare mineral mining element.

Motivates and political context

The logical basis of this step focuses on promoting American technological independence, as Intel was the only major conductor company that produces advanced flags on the United States, a confrontation with its great plan in Ohio-which was announced in 2022 as an investment of $ 20 billion-it faced a frequent delay for the growing with the growing with Pves Global like TSMC like TSMC.

The semiconductor sector is increasingly seen as it is crucial to everything from smartphones to weapons. Trump’s critics often cite as “state capitalism”, but supporters argue that direct support for Intel is necessary for national security, technological leadership, and economic growth, especially since China, Taiwan and South Korea are in their resources industries.

The current situation in Intel

Intel was suffering from a series of setbacks. In 2024, its stock lost 60 % of its value – a decrease in its history. The company was absent from major opportunities in artificial intelligence chips, and its causative works, which aim to produce chips for other companies, struggling to win the main customers.

The CEO of the new Intel, Lip-Bu Tan, was named after the council toppled Gelsiner last year in an attempt to accelerate a shift. Tan has already expanded the Ambassadors of the Ohio factory, which causes expansion and took a cautious approach to the demand. His previous investments with Chinese semiconductor companies were criticized after an investigation into the Reuters bomb in April – to the extent that President Trump has publicly called for his resignation last week because Tan was “very conflicting” with his relationships with Chinese entities. Tan held a meeting with Trump at the White House since then, which Trump called “very interesting”, adding that Tan has a “amazing story.” People familiar with the matter said Bloomberg The current investment plan stems from crisis talks.

Before Trump’s statement, four former Intel managers published an exclusive comment luckSaying that the company is likely to decline as the American champion of the chips. After the president’s statement, they called for the separation of the basic “Mabisk” work, which is essential for national security.

Craig Barrett, former CEO of Intel, commented on luck On how to save the company, call “Cash Poor” and is unable to withstand “investments in the necessary capabilities in the future to replace it [semiconductor rival] TSMC or even a reasonable part of TSMC capacity. “Barrett added that Intel may need a cash pump of $ 40 billion to be a competition. [Chips] The capital is more likely given [U.S. government] It is the savior. ” Bloomberg Then I mentioned that the Trump administration was considering using money from the chips law to partially finance at least purchasing a share in Intel, indicating people familiar with this issue.

The White House and Intel did not respond luckComment requests.

For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.