The US government is negotiating a potential stake in Intel to bolster the company's planned factory in Ohio. This comes after a meeting between President Trump and Intel CEO Lip-Bu Tan, as well as other cabinet members. Trump's prior calls for Tan's resignation due to his investments in Chinese technology firms coincided with these talks. Despite not confirming details, Intel remains committed to enhancing US technology and manufacturing. The agreement could provide necessary financial support as Intel seeks to recover from significant market value losses since 2020.
Intel's shares surged more than 7 percent in regular trading and then another 2.6 percent after the bell on Thursday, following Bloomberg News' initial report of the potential deal.
It is unclear what size stake the federal government will take, but Bloomberg reports that the deal will help shore up a planned factory in Ohio that has been delayed.
Tan also met Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. The meeting was a very interesting one, Trump said on Truth Social on Monday.
Intel has lost its position in recent years, with its stock market value plummeting to $104bn from $288bn in 2020.
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