Intel Corp. (NASDAQ:INTC) stock climbed more than 6% on Friday after President Donald Trump said the government should acquire roughly a 10% stake in the struggling chipmaker.
Waiting For Official Announcement
President Trump told reporters at the White House that Intel had agreed to the deal, according to CNBC.
"They've agreed to do it, and I think it's a great deal for them," Trump said.
However, a White House official cautioned that discussions with Intel are still ongoing and that no final decision has been made.
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According to the official, Intel CEO Lip-Bu Tan has not committed to the proposal, though he is scheduled to meet with Trump later on Friday. An Intel spokesperson declined to comment.
The potential investment would highlight a notable shift in U.S. industrial strategy, with Washington playing a more direct role in private enterprise.
Commerce Secretary Howard Lutnick said earlier this week that the government wants equity in Intel in return for federal support under the CHIPS Act.
"We should get an equity stake for our money," Lutnick said on CNBC's "Squawk on the Street."
"So we'll deliver the money, which was already committed under the Biden administration. We'll get equity in return for it."
The news comes just days after SoftBank announced a separate $2 billion investment in Intel, giving the Japanese conglomerate about a 2% stake.
Domestic Chip Supply
Intel remains the only U.S. company capable of producing the world's most advanced semiconductors domestically. However, it continues to lag behind Taiwan Semiconductor Manufacturing Company (TSMC), supplier to major firms such as Apple, Nvidia, Qualcomm, AMD, and even Intel itself.
The company has been pouring billions into new factories in Ohio—an effort it once branded the "Silicon Heartland"—with hopes of eventually producing state-of-the-art AI chips there.
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