Trump Administration Considering Acquiring 10% of Intel’s Shares

The Trump administration is considering acquiring a 10% stake in Intel Corporation. If this is done, the US government will become Intel’s largest shareholder.

According to reports from The New York Times and Bloomberg, White House officials and insiders have revealed that the government is considering converting Intel’s approved $10.9 billion federal subsidies under the Chip and Science Act into Intel equity to support the US semiconductor manufacturing industry and revive the struggling chip manufacturer. Intel’s current market value is approximately 103.6 billion US dollars.

The report states that there are still doubts about whether this idea has gained widespread support within the government, the specific shareholding size, and whether the government has decided to proceed with the plan. It is also unclear whether the government will seek similar arrangements from other companies that receive subsidies under the Chip and Science Law.

White House spokesperson Kush Desai declined to comment on the details, the US Department of Commerce, which oversees the Chip and Science Act, declined to comment, and Intel has not yet responded to the matter.

Industry analysts believe that if the negotiations are successful, this deal will require approval from Intel’s board of directors. The transaction may also face questioning of its legality by Intel shareholders or peers.