The Trump administration is negotiating to convert previously pledged government grants into a roughly 10% equity stake in Intel, which would make the government one of the company’s largest shareholders and blur public-private boundaries. The administration is using licensing and regulatory levers across the semiconductor sector, requiring Nvidia and AMD to pay a 15% commission on chip sales in China for export approvals. The moves aim to stimulate domestic chip manufacturing, reduce dependence on overseas suppliers, and preserve U.S. technological leadership against China. The president also publicly urged Intel CEO Lip-Bu Tan to resign on August 7.
President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the Trump administration's involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers.
The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy.
In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the U.S.,
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