Trump Secures Intel Stake Amid Chip War Tensions

President Donald Trump announced an agreement for the U.S. government to secure a 10% stake in Intel. This decision emerges amidst lingering trade tensions and Trump's drive to enhance domestic chip production. The move aims to reduce dependency on foreign chips and bolster technological competition against China.

Devdiscourse News Desk | Washington DC | Updated: 23-08-2025 01:06 IST | Created: 23-08-2025 01:06 IST

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President Donald Trump revealed that Intel will offer a 10% stake to the U.S. government, as part of efforts to enhance national capabilities in chip production and counter China's technological gains in artificial intelligence.

The deal, which is tied to converting government grants initially pledged under President Joe Biden's administration, highlights a blend of public and private sectors in the economy. Trump's administration has also urged other major chip makers like Nvidia and AMD to adjust their sales dynamics with China.

Amidst these developments, concerns arose regarding Intel CEO Lip-Bu Tan's past ties to China, although Trump has since endorsed Tan following assurances of his commitment to U.S. interests. Despite sustaining financial setbacks, Intel remains a pivotal player in the global tech sphere.

(With inputs from agencies.)