U.S. President Donald Trump has reached a deal for a 10% equity stake in struggling chipmaker Intel, following a recent meeting with CEO Lip-Bu Tan.
Bloomberg reported recently that the US government entered talks with Intel about taking a stake in the chipmaker after President Donald Trump appeared to soften his stance on a call for CEO Lip-Bu Tan to resign immediately.
“He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion,” Trump said on the 22nd August, according to Bloomberg.
Trump added the move “is a great Deal for America” and said the building of advanced chips “is fundamental to the future of our Nation.”
Intel said in a statement that the US government would make a $8.9 billion investment in Intel common stock.
Trump’s interest in propping up the chipmaker is part of a move by his administration to strengthen domestic semiconductor manufacturing across sectors it deems central to US national security.
A statement from Intel said the government’s equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program.
It added: “The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has received to date, making for a total investment of $11.1 billion.”
Earlier this week, Intel received a $2 billion capital injection from SoftBank Group.
Source: Mobile World Live
Image Credit: Intel