Trump announce US now owns 10% stake in | Tech News
President Donald Trump introduced that the tech company, Intel, has agreed to present the US authorities a 10% stake in its business.
Trump advised the media that the deal got here from a assembly final week with Intel CEO Lip Bu Tan, days after the president referred to as for Tan to resign over his earlier ties to China.
“I said, I think it would be good having the United States as your partner,” Trump mentioned. “He agreed, and they’ve agreed to do it.
The California-based company, which has a market cap of a little over $100 billion, also made a deal with Japanese tech giant SoftBank Group for a 2% stake in Intel.
“It is my Great Honor to report that the United States of America now absolutely owns and controls 10% of INTEL, a Great American Company that has an even more unbelievable future,” Trump wrote on Truth Social.
Secretary of Commerce Howard Lutnick tweeted a picture with Tan, sharing the “massive information.”
“This historic settlement strengthens U.S. management in semiconductors, which is able to each grow our economic system and help secure America’s technological edge,” wrote Lutnick.
“Thanks to Intel CEO @LipBuTan1 for placing a deal that’s truthful to Intel and truthful to the American People.”
Throughout his second term, Trump has shown a keen interest in the computer chip industry, with the administration requiring Nvidia and Advanced Micro Devices to pay a 15% commission on their sales of chips in China to receive export licenses.
“I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company.”
Trump added that the US has “paid nothing” for these shares, claiming that they’re valued at approximately $11 billion.
“This is a great Deal for America and, additionally, a great Deal for INTEL. Building forefront Semiconductors and Chips, which is what INTEL does, is key to the longer term of our Nation.”
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Trump’s interest in Intel may stem from his desire to boost chip production in the US, believing that the country would be in a better position to keep its technological lead on China in the AI race by lessening its dependence on international chips.
While unusual, it is not unheard of for the US authorities to turn into a main shareholder of a distinguished company. During the Great Recession in 2008, the federal government gave practically $50 billion to General Motors in return for a 60% stake when the company was on the verge of chapter.
Following this, the federal government ended up with an approximate $10 billion loss after promoting its stock in GM.
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