A few days after President Donald Trump called on Intel to step down as CEO, he talks about private stocks.
The administration of US President Donald Trump is in talks with Intel as it could potentially take stock of chipmakers to the US government.
Intel’s stocks surged more than 7% in regular trading and another 2.6% after Thursday’s Bell, following Bloomberg News’ initial report of potential trades, citing people familiar with the plan.
It is unclear what size of the federal government will take, but Bloomberg reports that the deal will help “open” Ohio’s planned plants.
The plan stems from this week’s meeting between Trump and Intel CEO Lip Bou Tan, the report says.
Tan also met Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bescent.
“The meeting was very interesting,” Trump said on Truth Social on Monday, adding that members of his cabinet and Tan will spend time together and bring him a proposal next week.
The meeting comes after Trump publicly demanded that he resign in a tanned resignation over past investments in Chinese tech companies related to the Chinese military.
Intel declined to comment on the report, but said it was deeply committed to supporting Trump’s efforts to strengthen US technology and manufacturing leadership.
“Unless it is officially announced by the administration, discussions about virtual transactions should be considered speculation,” said White House spokesman Kush Desai.
The details of interests and pricing are still under discussion, according to the report.
A struggling business
The contract and potential cash injections will help in years of effort to turn the company’s fate around. Once an uncontroversial leader in chip manufacturing, Intel has lost its position in recent years.
The stock market value of chipmakers plummeted to $100 billion from $288 billion in 2020.
Intel’s profit margins were once the industry’s vy hopes – even half of its historic highs.
Tan was entrusted with revoking years of failures where Intel struggled to break into the booming AI chip industry, dominated by Nvidia, but his high-invest contract manufacturing ambitions led to major losses.
According to Bloomberg, any agreements likely will help build the planned chip complex in Ohio.
Intel’s planned $28 billion chip manufacturing plant is behind, with the first unit being completed in 2030 and scheduled to begin operations between 2030 and 2031, pushing back the timeline for at least five years.
Taking stocks in Intel, the latest move by Republican Trump will deepen government involvement in the US chip industry and see it as a critical security concern for the country.
Earlier this week, Trump signed a deal with NVIDIA and paid the US government to cut sales in exchange for resuming the ban on AI chips in China.
