Trump Secures US Stake in Intel Amid National Security Concerns
President Donald Trump announced the US government's acquisition of a 10% stake in Intel. Amid national security concerns about Intel's CEO Lip-Bu Tan, the deal involves previously issued funds and marks a significant government investment in a key American tech company struggling with leadership and market challenges.
- Country:
- United States
The US government, led by President Donald Trump, has acquired a 10% stake in Intel, intensifying its involvement in the tech giant during a turbulent period for the company. This strategic move follows President Trump's critical comments about Intel's CEO, Lip-Bu Tan, who faced scrutiny over past investments in Chinese firms.
The deal, converting $11.1 billion of previously pledged funds into 433.3 million non-voting shares, provides the US government a paper gain of $1.9 billion. This development positions the government as a major shareholder while Intel attempts to recover from extensive layoffs and leadership changes.
Although the Trump administration sought to leverage funds from the CHIPS and Science Act initiated under President Biden, critics view this approach as an inappropriate blend of public and private interests. The transaction highlights ongoing tensions in US-China tech relations, impacting Intel's operations and the broader industry.
(With inputs from agencies.)
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