Trump Reveals Plans to Purchase 10 Percent Stake in Intel
(MENAFN) In a bold move, President Donald Trump declared on Friday that the U.S. will purchase a 10% stake in Intel, one of the largest semiconductor producers globally.
During a White House briefing, Trump criticized Intel for shifting operations abroad, particularly to Taiwan, after once being the dominant player in the chip industry. He noted that Intel's leadership allowed this shift, leading to its decline.
Reflecting on a recent meeting with Intel's CEO Lip-Bu Tan earlier this month, Trump warned that if Intel continues its operations outside the U.S., tariffs as high as 500% could be imposed. "Anybody that sells into the U.S. has to pay," he emphasized.
The President's remarks came after a highly publicized sit-down with Tan on August 12, where Trump had demanded Tan resign over alleged ties to Chinese firms with military links. Despite this tension, Trump later praised Tan's "amazing story" of success.
On Friday, Trump reiterated his stance on Tan’s resignation. "That's right, he should resign," he said, before adding, "I thought he was somewhat a victim. But, you know, nobody's a total victim."
Trump went on to discuss his offer for the U.S. to acquire a 10% stake in Intel, a deal he claimed Tan was open to considering. "I think he should pay us 10% of your company. And they said, 'Yes,' that's about $10 billion. I don't get it.” Trump said. “This comes to the U.S. of America.” “It's a great deal for them, and I think it's a great deal."
Trump emphasized the deal's benefit to the U.S., signaling that it would not be the last of its kind. He indicated that such transactions are common and promised to pursue more in the future.
The announcement had an immediate impact on Intel's stock, which surged 6.3% as of 18:30 GMT following the President's statements.
In a separate development, SoftBank of Japan also bought $2 billion in Intel stock this week, further signaling a high level of investor interest in the chipmaker.
This deal, with its potential ripple effects, highlights the ongoing tension between global business strategy, government intervention, and the shifting dynamics of international trade.
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