US in talks over 10% Intel stake, White House confirms
On Tuesday, the White House confirmed that the Trump administration was working on an agreement that could see that the US government received a 10% stake in Chip Giant Intel.
“The President wants to put the needs of America in the first place with both national security and economic perspective,” the White House Press Secretary Karoline Leavitt said to journalists. He said.
According to US Trade Secretary Howard Lutnick, the potential agreement may include the change of government grants for Intel shares.
Extremely extraordinary movement can help Intel while struggling to compete with competitors such as Nvidia, Samsung and TSMC, especially to compete in the exploding artificial intelligence (AI) chipset. Intel was contacted by BBC for comment.
Lutnick asked for a share in exchange for grants approved during the Biden administration, at CNBC on Tuesday.
“We must take a share of equity for our money.” “We will get equality in return … Instead of just giving grants.”
The first potential agreement last week aims to help Intel create an flagship production center in the US state. At that time, a White House spokesman BBC told the BBC that the reports should “be accepted as speculation unless officially announced.
Last week, Intel did not comment directly about reports, but he said that it was “very dependent on supporting President Trump’s efforts to strengthen production and technology in the United States.”
On Monday, the Japanese investment giant Softbank said that some analysts will buy a $ 2 billion (£ 1.5 billion) share in Intel with a movement in which some analysts say it was a sign of trust in the return of the company.
After this announcement, The company’s shares increased almost 7% in New York on Tuesday.
Intel is one of the few US companies that can produce high -level semiconductors on a scale, but the company is behind global competitors.
Dan Sheehan, one of Telos Asset consultant, said that the government, which received a potentially share in Intel, reflects the company’s “unique position” as the main producer of America’s main high -level chips.
But political participation, decision -making and priorities can slow down and add difficulties to a challenging return for Intel, Sheehan said.
Some other experts expressed their concerns about the potential agreement and that companies could not pressure and put pressure to follow the political agenda.
Developments were under intensive examination by the White House, the US chip industry.
Last week, Nvidia and AMD agreed to pay 15% of Chinese revenues to the US government as part of an unprecedented agreement to secure export licenses to China.
