The United States is in talks for a 10 % stake in Intel, the White House says

Open the newsletter to watch the White House for free

Your guide to what the second period of Trump means to Washington, business and the world

The White House said on Tuesday that it “heated details” of a deal that would require the US government a 10 percent stake in the American company Intel.

Caroline Levitt, the White House press secretary, said on Tuesday that Howard Lottenic, the US Secretary of Commerce, was crushing the terms of the extraordinary arrangement, days after the discussion reports caused in a gathering in Intel Arrow price.

“As for this 10 percent government deal, the Ministry of Commerce continues to work on,” Levitte said. “I know that the Secretary Lootnick is working on it and abandoning the details, but the president wants to develop the needs of America first, from the national and economic security perspective.”

The Trump administration wants to enhance the United States’ ability to build advanced chips. Intel has incurred billions of dollars in losses because it is struggling to compete with the semiconductor manufacturer in Taiwan to make the most advanced chips.

Levitte said that the possible Intel share was “a creative idea that has not been done before”, and it will “will ensure that we are reformulating these critical supply chains with the acquisition of something for the US tax motivation.”

Intel refused to comment on the plan, which could include the transfer of billions of dollars in grants under the Joe Biden Chips Law to a royal rights share of the United States government.

Intel shares rose by more than 7 percent on Tuesday, after news that Japan Softbank invests $ 2 billion In the company.

Softbank CEO of Softbank discussed the purchase of the company’s turbulent manufacturing business directly with Intel Executive Lip-Bu Tan, I mentioned financial times this week.

Intel is in line with grants, which total $ 7.9 billion in direct manufacturing subsidies aimed at strengthening Intel projects in manufacturing in Arizona, Ouhayu, New Mexico and Oregon. A separate program was agreed to support the Ministry of Defense worth $ 3 billion, under the Chips Law, earlier in 2024, which raised the total Intel subsidies to about $ 10.9 billion.

This would equal approximately 10 percent of the technology company, which has struggled to compete with Taiwan TSMC in making the most advanced Semiconductor For external clients.

Intel has received about $ 2.2 billion of chips law, which is spent based on companies that collide on the occasion of specific project landmarks.

Lutnick told CNBC earlier that the United States “should get the deal to take advantage of the deal … This is exactly the perspective of Donald Trump, which is:” Why do we give a company worth $ 100 billion this type of money? What is this for American taxpayers? “” “

He said that the Intel 10 percent will not grant voting rights or governance.

Lutnick emphasized the need to build the ability to manufacture US chips. “We cannot rely on Taiwan, 9,500 miles away from us, just 80 miles from China,” he said.

Trump, in turn, was based on the chips law, which was issued with the support of the two parties in 2022, early in his administration. A number of foreign chips manufacturers including TSMC, Samsung, SK Hynix and Globalwafers are approved for large grants, as well as American chips such as Micro.