US weighs taking stake in Intel, Bloomberg News reports
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The Intel investment plan reportedly came about as a result of a meeting between US President Donald Trump and Intel chief executive Tan Lip-Bu (above).
PHOTO: BLOOMBERG
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WASHINGTON - The Trump administration is in talks with Intel to have the US government potentially take a stake in the chipmaker, Bloomberg News reported on Aug 14, citing people familiar with the plan.
The company’s shares, which closed about 7 per cent higher in regular trading following the report, were last up 2 per cent after the bell.
The plan stems from a meeting this week between US President Donald Trump and Intel chief executive Tan Lip-Bu, the report said.
This comes after Mr Trump publicly demanded the resignation of Mr Tan
Intel declined to comment on the report, but said it was deeply committed to supporting Mr Trump’s efforts to strengthen US technology and manufacturing leadership.
Any agreement and potential cash infusion will help Intel at a time when the company has been cutting spending and slashing jobs to turn its fortunes around. Once the undisputed leader in chip manufacturing, Intel has lost its position in recent years.
Its stock market value has plummeted to US$104 billion (S$133 billion) from US$288 billion in 2020.
The White House did not immediately respond to Reuters’ request for comment. REUTERS
