Intel shares skyrocket following report Trump admin is mulling taking stake in chipmaker | Latest Tech News
The Trump administration is in talks with Intel to have the US authorities probably take a stake in the struggling chipmaker, Bloomberg News reported on Thursday, citing people acquainted with the plan.
Intel’s shares surged over 7% in common trading and then another 2.6% after the bell.
The plan stems from a assembly this week between President Trump and Intel CEO Lip-Bu Tan, the report added.
The plan stems from a assembly this week between President Trump and Intel CEO Lip-Bu Tan, the report said. Getty Images
The meting got here days after Trump publicly demanded the resignation of Tan over his past investments in Chinese tech firms, some linked to the Chinese army.
Intel declined to remark on the report but said it was deeply dedicated to supporting President Trump’s efforts to strengthen US technology and manufacturing management.
“Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” said White House spokesman Kush Desai.
The particulars of the stake and price are still being mentioned, according to the report.
Any settlement and potential money infusion will help the years-long efforts to flip around the company’s fortunes. Once the undisputed chief in chip manufacturing, Intel has misplaced its place in latest years.
Taking a stake in Intel would mark the latest transfer by Trump to deepen the federal government’s involvement in the US chip industry, seen as a important security curiosity to the nation. AFP via Getty Images
The chipmaker’s stock market worth has plummeted to $104 billion from $288 billion in 2020.
Intel’s revenue margins – once the envy of the industry – are also at about half their historic highs.
Tan has been tasked to undo years of missteps that left Intel struggling to make inroads in the booming AI chip industry dominated by Nvidia, while investment-heavy contract manufacturing ambitions led to heavy losses.
Intel CEO Lip-Bu Tan has been tasked to undo years of missteps that left Intel struggling to make inroads in the booming AI chip industry dominated by Nvidia. AP
Any settlement would probably help Intel construct out its deliberate chip complicated in Ohio, Bloomberg reported.
Intel’s deliberate $28 billion chip fabrication plants in Ohio have been delayed, with the first unit now slated for completion in 2030 and operations to start between 2030 and 2031, pushing the timeline back by at least 5 years.
Taking a stake in Intel would mark the latest transfer by Trump, a Republican, to deepen the federal government’s involvement in the US chip industry, seen as a important security curiosity to the nation.
Earlier this week, Trump made a deal with Nvidia to pay the US authorities a cut of its gross sales in exchange for resuming exports of banned AI chips to China.
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