U.s. Government Plans To Take A 10% Stake In Intel

The U.S. authorities plans to return a 10% liking successful Intel, President Donald Trump told reporters Friday. Bloomberg was first to report nan news, which pushed nan semiconductor spot company’s banal up much than 7%. Trump said Intel has agreed to nan proposal.

The news comes during a pivotal — and precocious volatile — clip for Intel. CEO Lip-Bu Tan is presently restructuring nan chipmaker, shuttering definite divisions and laying disconnected workers successful a bid to attraction connected its halfway businesses and drawback up to rivals for illustration Nvidia.

Earlier this month, Trump pushed Tan to resign because of perceived conflicts of interest. Tan later met pinch Trump to find retired a measurement to assuage nan president and fig retired ways for nan institution and authorities to activity together.

Such national authorities ownership of a awesome corp would people a melodramatic departure from longstanding U.S. policy. Government equity stakes successful backstage companies are highly uncommon successful nan U.S. and highly controversial, pinch notable exceptions occurring during nan 2008-2009 financial situation erstwhile nan authorities took impermanent ownership stakes successful companies for illustration General Motors, AIG, and a fewer awesome banks to forestall economical collapse.

The deal, which is expected to beryllium announced later Friday, comes days aft nan Japanese conglomerate SoftBank agreed to make a $2 cardinal investment successful Intel. That woody was couched arsenic a committedness to precocious exertion and semiconductors successful nan U.S.. Under that agreement, SoftBank agreed to bargain Intel communal banal astatine $23 per share. Intel shares were trading astir $25 connected Friday afternoon.

TechCrunch has reached retired to Intel and nan White House for comment.

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