Trump Administration Seeks 10% Stake in Intel Amid Bid to Boost Domestic Chip Production

As part of its push to increase domestic manufacturing and reduce reliance on overseas suppliers, the Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants pledged to Intel under President Joe Biden. The potential deal would make the U.S. government one of Intel's largest shareholders, blurring the lines between the public and private sectors. This move is the latest step in Trump's efforts to reprogram the operations of major computer chip companies, including Nvidia and Advanced Micro Devices.

Key Takeaways:

• The Trump administration is seeking a 10% stake in Intel in exchange for converting government grants pledged under President Joe Biden.
• The U.S. government would become one of Intel's largest shareholders, with non-voting shares that would prevent interference in the company's business.
• The administration's interest in Intel is driven by Trump's desire to boost chip production in the U.S. and reduce dependence on overseas suppliers.
• Trump has been leveraging his power to reprogram the operations of major computer chip companies, including requiring Nvidia and AMD to pay a 15% commission on their sales of chips in China in exchange for export licenses.
• Intel has fallen behind rival chipmaker Nvidia and AMD in recent years, with the company losing nearly $19 billion last year and another $3.7 billion in the first six months of this year.
• The U.S. government is also considering requiring Intel to pay a 15% commission on its sales of chips in China in exchange for export licenses.
• Intel has been struggling to recover from a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut.
• The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program established by the Biden administration, but has not been able to revive its fortunes.

Statistics:

• Intel has lost nearly $19 billion last year and another $3.7 billion in the first six months of this year.
• The U.S. government is considering requiring Intel to pay a 15% commission on its sales of chips in China in exchange for export licenses.
• The Biden administration's incentives program has pledged $7.8 billion to Intel, but the company has only received about $2.2 billion.
• General Motors received nearly $50 billion in government assistance in 2008, resulting in the U.S. government holding a roughly 60% stake in the automaker.
• The government ultimately sold its stock in GM at a loss of roughly $10 billion.

Sources:

• AP (SAN FRANCISCO)
• CNBC