WASHINGTON: President Donald Trump announced that computing giant Intel has agreed to provide the United States government with a 10% equity stake in the company.
“I said, I think you should pay us 10 percent of your company,“ he told reporters about a meeting with Intel last week.
Trump stated that having the United States as a partner would benefit the semiconductor manufacturer while describing the arrangement as favourable for both parties.
This development follows US Commerce Secretary Howard Lutnick’s earlier suggestion that Intel should grant Washington an equity stake in exchange for grants previously committed under the Biden administration.
Lutnick clarified that any such arrangement would not provide the administration with governing or voting rights within the company.
He specifically criticised grants committed under the CHIPS and Science Act, describing them as funding that was being simply given away without adequate return.
The CHIPS and Science Act represented major legislation passed during President Joe Biden’s term aimed at strengthening the domestic semiconductor industry.
Intel, once Silicon Valley’s dominant force, has seen its market position challenged by Asian semiconductor powerhouses TSMC and Samsung.
In a related development, Japan-based SoftBank Group announced a two billion dollar investment in Intel, continuing its pattern of US investments.
SoftBank’s charismatic founder Masayoshi Son has been actively pursuing business relationships and investments in the United States while courting President Trump’s administration. – AFP
