The Intel logo on a sign in front of Intel headquarters on July 16 in Santa Clara, California.
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The Trump administration is reportedly considering having the US government take a stake in Intel, a company that was once one of America’s most important tech giants but which has since fallen on hard times.
Following a meeting between President Donald Trump and Intel CEO Lip-Bu Tan this week, Bloomberg reported on Thursday that the two sides are discussing an unusual deal in which the government would pay for a stake in the company. The specifics are reportedly still being worked out.
The agreement could bolster the struggling chipmaker, which has fallen behind rivals after missing key technology waves. The White House also wants to help Intel follow through on plans to open a new US manufacturing facility in Ohio, which has been repeatedly delayed, according to Bloomberg. Intel shares (INTC) rose more than 7% on Thursday, jumping in late-day trading following Bloomberg’s report about the talks.
It’s unclear when or if such a deal might be inked. But if it were to happen, it could also serve as a model for other investments by the Trump administration, which has been weighing opportunities to take similar stakes in various US companies in critical industries, two people familiar with the White House discussions on the matter told CNN. Trump has been pushing to increase domestic manufacturing, especially of key tech products and components such as semiconductors and artificial intelligence data centers.
“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration,” White House spokesman Kush Desai said in a statement to CNN.
An Intel spokesperson declined to comment on the Bloomberg report but said the company “is deeply committed to supporting President Trump’s efforts to strengthen U.S. 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,” the spokesperson said in a statement.
Tan met with Trump on Monday after the president called for his immediate resignation following reports and allegations that he has ties to China. Trump later called the meeting “very interesting” and said Tan’s “success and rise is an amazing story.” The president added that he expected Intel and his cabinet members to bring him “suggestions” in the coming days.