The United States government will take a 10% stake in Intel in an agreement with difficult chips manufacturer, US President Donald Trump said on Friday, marking the latest extraordinary intervention in corporate affairs.
Intel, whose shares rose more than 6%, declined to comment.
The agreement marks a clear change of direction that happens a few weeks after Trump called for the resignation of Intel’s CEO, Lip-BU Tan, because of “highly conflicting” ties with Chinese companies.
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US support can give Intel more room to regain its customary chip production business, analysts say, but the company still faces problems with a weak portfolio of products and challenges to attract customers to their new factories.
Trump, who met with Tan on August 11, adopted an unprecedented approach to national security.
The US President has pressed on multibillionaire government agreements in the rare chip and land industry, such as one involving the Nvidia Artificial Intelligence Processor manufacturer and one with a rare land mining company MP materials, to ensure essential minerals.
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Tan took command of Intel in March. The company had a loss of US $ 18.8 billion in 2024, the company’s first negative result since 1986. The company’s last fiscal year with positive -adjusted cash flow was 2021.
