Trump administration in talks to take stake in Intel: Reports

The Trump administration is in talks with Intel over a possible U.S. government investment in the struggling chipmaker, Bloomberg News reported Thursday. The development came barely days after a meeting between Trump and Intel CEO Lip-Bu Tan.

The potential Trump Intel stake would mark another direct intervention by Donald Trump in sectors considered vital to national security.

According to the report, Trump has in the past backed large-scale tie-ups in strategic industries such as semiconductors and rare earths, including a deal with Nvidia and a supply arrangement with MP Materials. The latest discussions center on Intel, a company seen as central to U.S. China tech policy and domestic manufacturing.

Intel declined to comment on the Bloomberg report. Meanwhile, shares of Intel jumped more than 7% in regular trading on Thursday and gained an additional 2.6% after hours.

The talks followed a meeting earlier this week between Trump and Intel CEO Lip-Bu Tan. Earlier, Trump called for Lip-Bu Tan’s resignation over his investments in Chinese tech companies, some allegedly tied to the Chinese military.

Bloomberg said details on the size of the stake and its valuation are still under discussion.

A few days back, Trump announced a sweeping trade measure targeting imported chips. “We will be putting a tariff of approximately 100 per cent on chips and semiconductors,” the president said in the Oval Office during a meeting with Apple CEO Tim Cook.

“But if you are building in the United States of America, there is no charge,” he said.

The move comes just over three months after the administration temporarily exempted most electronics from its highest tariffs. Trump emphasised that U.S.-based chipmakers would be spared from the import tax, citing the COVID-19 pandemic’s global chip shortage, which had driven up auto prices and fueled inflation.

Market analysts said investors appeared to view potential tariff exemptions as a positive for Apple and other tech giants investing heavily in domestic chip production.