Trump says Intel CEO agreed to give the US a 10% stake

In a bold move to strengthen the United States' semiconductor sector, President Donald Trump announced an agreement with Intel's CEO, Lip-Bu Tan, that grants the U.S. a significant 10% stake in the troubled chipmaker, valued at $10 billion. This arrangement, as per Trump, is not only beneficial for the U.S. but also for Intel itself. During a press briefing in the Oval Office, Trump stated, "I said, I think you should pay us 10% of your company, and they said yes." He emphasized the mutual advantages of the deal, claiming it serves both parties well. "He walked in wanting to keep his job, and he ended up giving us $10 billion for the United States," Trump remarked. This agreement comes on the heels of Trump's previous call for Tan's resignation due to concerns over his alleged ties to China. The initiative aims to enhance semiconductor manufacturing domestically, though the extent of the Trump administration's involvement in Intel's strategic decisions remains uncertain. Moreover, Trump hinted at pursuing similar arrangements with other companies, highlighting a potential shift in how the U.S. engages with major tech firms. Following the announcement, Intel's stock saw an uptick of over 6.5% on the market. The discussions about this unusual arrangement were confirmed earlier in the week by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, stating that the deal could convert funding from the Biden-era CHIPS Act into an equity stake for the U.S. Lutnick reinforced the idea that "America should get the benefit of the bargain" in such agreements. Both Trump and his predecessor, Joe Biden, have underscored the importance of increasing domestic semiconductor production, viewing it as a critical national security issue. Given that a significant portion of global chip production occurs in Taiwan, there has been a notable push from various tech companies to expand manufacturing capabilities within the U.S. in recent years.