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Earlier this month, President Trump called on Tan to resign, accusing him of questionable ties to China. Tan dismissed the allegations as “misinformation”.
The government will receive a five-year warrant priced at $20 per share (File photo via AFP/AP)
The US government has acquired a 10% stake in Intel, President Donald Trump announced Friday in a Truth Social post. Trump revealed that he had asked Intel CEO Lip-Bu Tan to finalise the agreement during a recent meeting at the White House.
Intel confirmed the deal in a statement published on its website Friday afternoon, disclosing that the government will invest $8.9 billion in Intel common stock. This new investment adds to the $2.2 billion in CHIPS Act grants previously awarded to the company but not yet disbursed, bringing the total federal support to $11.1 billion.
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According to Intel, the funds will come from grants previously promised under the CHIPS and Science Act, passed during President Joe Biden’s administration. The legislation is aimed at bolstering the domestic semiconductor industry in the face of increasing global competition, particularly from China.
“He agreed, and they’ve agreed to do it, and I think it’s a great deal for them,” Trump told on Friday. “He walked in wanting to keep his job, and he ended up giving us $10 billion for the US,” he added, referring to Intel CEO Lip-Bu Tan.
On Truth Social, Trump described the move as a win for both the company and the country, “Great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation.” As part of the agreement, the government will receive a five-year warrant priced at $20 per share.
Intel CEO has recently faced scrutiny from Trump. Earlier this month, he called on Tan to resign, accusing him of questionable ties to China. Tan dismissed the allegations as “misinformation” in a note to Intel employees, according to a report by the BBC.
According to NBC, Trump also recently convinced chipmakers Nvidia and AMD to pay the US government 15% of revenue from certain China sales in exchange for export licenses.
- Location :
Washington D.C., United States of America (USA)
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