Trump found a way to help Intel - buy a chunk of the company with the people's money
Donald Trump's administration is negotiating a possible purchase of a stake in semiconductor corporation Intel. According to Bloomberg, such a move is seen as a way to expand chip production in the US, including the long-delayed Ohio plant project.
Here's What We Know
The talks came after Intel CEO Lip-Bu Tan met with administration officials on 11 August to discuss White House concerns and options for cooperation. The reason for the meeting was Trump's demand for Tan's resignation less than a week ago. The president has not publicly explained his claims, but earlier Republican Senator Tom Cotton sent a letter to Intel's board of directors questioning the top executive's possible ties to China.
Intel declined to comment on the deal. In an official statement, the company said it is "deeply committed to supporting President Trump's efforts to strengthen US leadership in technology and manufacturing" and will continue to work with the administration on shared priorities, but will not respond to "rumours and speculation".
On the back of news of the talks, Intel shares rose 7-9% on the stock exchange, adding billions of dollars to the company's capitalisation. The growth was supported by investors' expectations that government involvement will help speed up the launch of the Ohio plant and improve Intel's competitive position in the chip sector, where it is behind Nvidia and AMD.
Source: Bloomberg
