Intel must give government shares for the chip funds

Trade Secretary Howard Lootnick He said Tuesday Intel The US government must give a shareholder in the company in exchange for Chips funds.

“We must get a share of shares for our money,” Lottennik said at “Squawk on the Street”. “So we will provide the money, which was already committed under the Biden Administration. We will get ownership rights for that.”

The shares of the stumbling block maker increased by 7 % on Tuesday, and continued to gather recently Reports The Trump administration weighs different ways to participate in the company.

Bloomberg It was reported on Monday that the White House was discussing a 10 % stake in Intel, in a deal that might see that the United States government has become the largest contributor to the chips maker.

Intel and Softbank It announced on Monday that the Japanese group will make two billion dollars investment In the chips maker. Investment, which equals about 2 % of Intel, makes Softbank the fifth largest shareholder, according to FactSet.

Lootnick said that any possible arrangement will not provide the government to vote or governance in Intel.

“It is not governance,” Lootnick said. “Not voting.”

Intel refused to comment.

Lootnick also suggested the president Donald Trump You can look for similar deals with other chips.

Intel He said last fall He has ended a grant of approximately $ 8 billion in the law to build its factories. Taiwan semiconductor manufacturer He received 6.6 billion dollars under legislation to enhance the manufacture of chips in Arizona amenities.

Intel spends billions of dollars near Columbus, Ohio, to build a series of chips factories that the company previously described asSilicon HartlandIntel said the factory complex will be able to produce the most advanced chips, including artificial intelligence chips.

but In JulyIntel CEO of Intel said in a memo to employees that there will be no “other empty examinations”, and that it was slowing the building of the Ohio factory complex, depending on the market conditions.

The first factory is now scheduled to start its operations in 2030.

The Ohio factory was one of the most general projects funded by the Law of Chips and Science, which became a law in 2022. The law has committed the US government to finance the development and research of chips and its cost is estimated at about $ 53 billion.

“The Biden administration was literally granting Intel for free, giving TSMC free money, and all of these companies give them money free.” “Donald Trump turns this to saying,” Hey, we want property rights for money. If we’ll give you money, we want a piece of procedure. “

Intel has struggled to take advantage of the artificial intelligence boom in the semiconductors and severely spent a manufacturer that has not included an important customer yet. Intel took advantage of the lips Tan to be its CEO In March After his predecessor, it was Gilgringer Overwhelm In December.

Tan met with Trump at the White House last week after the president The name To resign, claiming that he had links with China.

– KIF Leswing from CNBC contributed to this report.