Trump Administration Considers Equity Investment In Intel Through Chips Act: Report

The Trump administration is reportedly exploring using funds from the U.S. Chips Act to take an equity stake in Intel (INTC). 

Talks are in early stages and center on whether Chips Act grants already earmarked for Intel could be converted into equity or supplemented with new funding from other sources, Bloomberg reported, citing people familiar with the matter.  Intel was already set to be the largest recipient of Chips Act funds, with $7.9 billion earmarked for commercial semiconductor manufacturing.

The plan could also involve combining Chips Act allocations with alternative financing streams. The report noted no final decisions have been made, and it remains unclear how much of a stake the government would seek or when a deal might be announced.

The update comes after Bloomberg reported on Thursday that the administration and Intel are mulling over a potential deal after President Donald Trump met with CEO Lip-Bu Tan earlier this week.

Intel’s stock climbed 4.3% in morning trade with retail sentiment on Stocktwits moving higher in ‘extremely bullish’ territory and chatter surging to ‘extremely high’ from ‘high’ levels over the past day. 

On Monday, Trump had called on Tan to resign as CEO, calling him ‘highly conflicted’ after Senator Tom Cotton sent a letter to Intel Chairman Frank Yeary expressing concern over Tan's investments and ties to semiconductor firms that are reportedly linked to the Chinese Communist Party. 

This would not be the first time the government has taken a stake in a company it believes is critical to the country’s economy. Trump’s administration struck a deal with MP Materials (MP) earlier this year that would make the Department of Defense the largest shareholder of the rare-earth producer.

Read also: OpenDoor Announces CEO Search As Carrie Wheeler Steps Down

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on