U.S. government plans to take a 10% stake in Intel

In a significant move, the U.S. government is preparing to acquire a 10% stake in Intel, as announced by President Donald Trump during a press conference. This news, first reported by Bloomberg, has already led to a surge in Intel's stock price, which rose by over 7%. Trump indicated that Intel has agreed to this proposal, although the company itself has opted not to comment on the matter. This development arrives at a crucial juncture for Intel, which has been navigating a period of instability. CEO Lip-Bu Tan is currently overseeing a major restructuring effort that includes closing certain divisions and reducing its workforce, all aimed at refocusing its core operations and regaining competitive ground against industry leaders like Nvidia. Recently, Trump had urged Tan to consider resigning due to perceived conflicts of interest, prompting a meeting where the two discussed potential collaboration between the company and the government. During his remarks, Trump acknowledged the pressure for Tan's resignation. "I mentioned that if there were reasons for him to step down, then perhaps that should happen. However, after our conversation, I found him to be a person of merit," Trump stated. He expressed a desire for the U.S. to have a stake in Intel, suggesting that such a partnership would benefit both parties in light of Intel's current challenges compared to competitors like Nvidia. The prospect of federal ownership in a major corporation marks a notable shift from traditional U.S. policy, where government stakes in private enterprises are rare and often contentious. Historically, such actions were primarily seen during the 2008-2009 financial crisis, when the government temporarily invested in firms like General Motors and AIG to stabilize the economy. This announcement arrives shortly after Japanese conglomerate SoftBank declared a $2 billion investment in Intel, which underscores a commitment to advancing semiconductor technology in the U.S. Under this arrangement, SoftBank is set to purchase Intel shares at $23 each, while Intel's stock was trading around $25 on Friday afternoon. TechCrunch has reached out to the White House for further clarification on this developing story.