The shares at Intel on Thursday increased by more than 7%, after the report that the Trump administration is negotiating to take a stake in the chipmaker.
The reported deal will support the technology firm’s plans to create a manufacturing center in Ohio, according to this BloombergWhich said that the size of the possible stake is not clear.
White House spokesman Kush Desai said, “The discussion about fictional deals should be considered as speculation unless the administration is officially announced.”
The article comes after a meeting between Intel Boss Lip-Bow Tan and US President Donald Trump, who first accused Shri Tan of being “highly disputed” due to China’s first relations.
The BBC has contacted Intel for comment.
According to Bloomberg, the firm spokesperson refused to comment on the discussions and stated that Intel is “deeply committed to supporting President Trump’s efforts to strengthen American technology and manufacturing leadership”.
The report said that the details of the share and price are still being discussed.
David Nicholson, a market research firm Futeuram Group’s tech analyst, said that the report reported to Intel, offering the company’s funding and government support, would be a “lifeline”.
In recent years, storage chipmaker has struggled in recent years after the AI fell back in the race, with rival Navidia ahead. Intel’s stock market price is more than $ 104 billion (£ 77bn) since 2020.
Mr. Nicholson told the BBC that the deal would indicate a deep “entertainment” of the government and private businesses in the US, after the trend seen elsewhere in places like China, Mr. Nicolson told the BBC.
This week, chip veteran NVidia and AMD agreed to pay 15% Chinese revenue to the US government in another example of direct intervention in the private venture of the Trump administration.
“Some people would think that it is unfair that Intel is being carried forward, but most would agree that it is strategically important to the US,” Mr. Nicolson said.
Intel’s employed Ohio factory, described as an important part of the interaction with Washington, was postponed as an important part of the company’s future.
The firm had a target to create the world’s largest chip manufacturing facility, but its development has faced many delays.
Although it is unusual for the US government to directly support the same company, supporting Intel may be a “special case” because the stakes are high for the US’s chipmaking age, said Tech analyst Austin Leone.
He explained that Intel is America’s best shot in competition with global rivals like TSMC and Samsung, and the Ohio plant will ensure that the country is able to create a high -end semiconductor at home, he explained.
In March, the US enterprise capitalist Mr. Tan, who took over as the Chief Executive Officer of Intel, has focused on catching the firm’s finance in the investigation and increasing the AI chip industry.
One in Social media post Last week, Trump called for Mr. Tan’s resignation, apparently referring to its alleged investments in companies that the US says that the Chinese are tied to the army.
