New York, Aug 15 (UNI) The Trump administration is reportedly considering having the US government take a stake in Intel, a company that was once one of America’s most important tech giants but which has since fallen on hard times.
Following a meeting between President Donald Trump and Intel CEO Lip-Bu Tan this week, Bloomberg reported on Thursday that the two sides are discussing an unusual deal in which the government would pay for a stake in the company.
The specifics are reportedly still being worked out, reports CNN.
The agreement could bolster the struggling chipmaker, which has fallen behind rivals after missing key technology waves.
The White House also wants to help Intel follow through on plans to open a new US manufacturing facility in Ohio, which has been repeatedly delayed, according to Bloomberg.
Intel shares (INTC) rose more than 7 percent on Thursday, jumping in late-day trading following Bloomberg’s report about the talks.
It’s unclear when or if such a deal might be inked. But if it were to happen, it could also serve as a model for other investments by the Trump administration, which has been weighing opportunities to take similar stakes in various US companies in critical industries, two people familiar with the White House discussions on the matter told CNN.
Trump has been pushing to increase domestic manufacturing, especially of key tech products and components such as semiconductors and artificial intelligence data centres.
An Intel spokesperson declined to comment on the Bloomberg report but said the company “is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership.”
