The US government has reportedly has discussions with Intel about taking a stake in the company, a development which follows President Donald Trump softening his stance on a call for CEO Lip-Bu Tan to resign.
Bloomberg reported the plan came to fruition following a meeting between President Trump and Tan this week, which was held to clear up concerns the White House had about the chief executive’s ties and investments in Chinese companies.
President Trump last week called for the immediate resignation of Tan over the issue, but seemed to have a change of heart following the meeting, indicating his team was willing to work with the CEO.
The size of the mooted stake was not reported, but sources claim the US government is prepared to pay it directly.
Details are still being sorted and talks could end without an agreement, Bloomberg added.
Deeply committed
A deal with US government would likely provide a boost for the development of a planned Intel factory hub in Ohio, which the chipmaker once said would become the largest chipmaking facility in the world. The plan, however, faced delays.
An agreement would also give Intel a much-needed financial boost, as Tan pushes ahead with a plan to reduce its headcount by more than 20 per cent as part of a wider cost cutting effort.
Intel did not directly respond to news of the talks to Bloomberg, but stated it was “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership”.
White House spokesperson Kush Desai told the outlet “discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration”.
Source: Mobile World Live
Image Credit: Intel
