The Trump administration is reportedly in discussions to buy a stake in beleaguered chipmaker Intel to help shore up the company’s delayed factory project in Ohio, according to people familiar with the plan.
Bloomberg reports that in a sign of the White House’s increasing willingness to intervene directly in key industries, the Trump administration is in talks with Intel about buying a stake in the struggling semiconductor giant. According to people familiar with the deliberations, the move aims to bolster Intel’s planned factory hub in Ohio, which has been repeatedly delayed.
The discussions follow a meeting this week between President Donald Trump and Intel CEO Lip-Bu Tan, whom Trump had previously accused of being “highly conflicted” due to concerns about his ties to China. The potential stake size remains unclear as plans are still fluid and could end without an agreement.
Intel shares climbed nearly nine percent on the news before closing 7.4 percent higher at $23.86 in New York, giving the company a market value of about $104.4 billion. The stock continued rising after hours. Shares are up more than five percent on Friday morning as the rally continues.
The White House declined to comment on “hypothetical deals,” while Intel stated its commitment to supporting Trump’s efforts to strengthen U.S. technology and manufacturing leadership without commenting on speculation.
The potential deal represents the latest direct intervention by the Trump administration into a key industry. The White House recently reached an agreement to receive a 15 percent cut of certain semiconductor sales to China and took a “golden share” in United States Steel as part of a sale clearance deal.
It also echoes the Defense Department’s unprecedented $400 million preferred equity stake in rare-earth producer MP Materials Corp., turning the Pentagon into the company’s largest shareholder. These moves signal a shift in how the federal government interacts with private industry in sectors deemed critical to national security and combating China.
Intel, once a chip industry pioneer, has struggled in recent years with market share losses and eroding technological advantages. The Ohio factory expansion was part of former CEO Pat Gelsinger’s comeback plan, but financial woes have imperiled the project, with delays pushing it into the 2030s.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
Read the full article here