Trump Administration Eyes Significant Stake in Intel
The Trump administration is actively considering acquiring approximately 10% of Intel Corp., potentially positioning the US as the chipmaker’s largest shareholder, reports 24brussels.
This initiative, which involves converting previously granted funds under the US Chips and Science Act into equity, coincides with SoftBank Group Corp.’s unexpected commitment to Intel, as it prepares to purchase a $2 billion stake in the beleaguered semiconductor manufacturer.
The move underscores a strategic effort to bolster domestic semiconductor production amid ongoing supply chain disruptions and global competition in the technology sector. Stakeholders believe that increased government involvement could stabilize Intel’s operations and enhance its market position.
As Intel grapples with operational challenges, the anticipated financial support from the government comes at a crucial time. Industry analysts suggest that a significant government stake in the firm could also lead to more robust collaboration between the public and private sectors, fostering innovation in the semiconductor field.
Officials from the Trump administration have highlighted the importance of sustaining American leadership in technology and ensuring the competitiveness of domestic companies in the global market. Intel’s ongoing investments in research and development are considered vital for maintaining this edge.
The discussions reflect broader initiatives aimed at reviving the semiconductor industry in the United States, in light of growing geopolitical pressures and the increasing reliance on advanced technology for national security and economic stability.
