U.S. government in talks to take 10 percent of Intel, Bloomberg reports

The Trump administration is reportedly considering taking a 10 percent stake in Intel by converting some or all of the company’s $10.9 billion in Chips Act grants into equity, according to Bloomberg. Such a move would value the stake at around $10 billion.

The talks come after President Trump demanded the resignation of Intel’s new CEO Lip-Bu Tan over alleged ties to Chinese firms, leading to a meeting between the two. Federal backing could give Intel temporary relief as it struggles with losses in its foundry business and a weak product roadmap.

Analysts say the government’s involvement signals Intel’s competitive position is worse than expected, though some argue it is preferable to Intel falling into foreign state ownership. The U.S. government has previously taken equity stakes in troubled firms, including General Motors during the 2008 financial crisis.

Credit: CGTN