Donald Trump is considering acquiring Intel to save it from its current crisis
Bloomberg News reported Thursday that the Trump administration is in talks with Intel about a potential U.S. government takeover of the struggling chipmaker, citing people familiar with the matter.
This move would represent another intervention by US President Donald Trump in sectors deemed vital to national security. Trump has pushed through billions of dollars in government deals in the semiconductor and rare earth metals sectors, including a fee-for-service agreement with Nvidia and an agreement with rare earth producer MB Materials to secure essential metals.
Intel declined to comment on the report, but stressed its unwavering commitment to supporting Trump's efforts to advance American leadership in technology and manufacturing. White House spokesman Khush Desai noted that "discussions about hypothetical deals should be considered purely speculative unless formally announced by the administration."
Intel shares rose more than 7% in regular trading, then rose another 2.6% after the close. These talks follow a meeting this week between Trump and Intel CEO Lippu Tan. The meeting came just days after Trump publicly called for Tan's resignation over his investments in Chinese technology companies, some of which have ties to the Chinese military.
According to Bloomberg, the details of the stake and price are still under discussion.
Ryota Makino, an analyst at Gabelli Funds, an Intel investor, believes the US government is likely to take a stake in Intel because Trump wants the company to expand domestic manufacturing and create more jobs.