Published: 2:31am, 23 Aug 2025Updated: 2:51am, 23 Aug 2025
The United States government will take a 10 per cent stake in Intel under an agreement with the struggling chipmaker, US President Donald Trump said on Friday, marking the latest extraordinary intervention in corporate affairs.
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Intel, whose shares rose more than 6 per cent, declined to comment.
The move marks a clear change of direction just weeks after Trump called for the resignation of the company’s new chief Lip-Bu Tan over his “highly conflicted” ties to Chinese firms.
It also follows a US$2 billion capital injection from SoftBank Group in what was a major vote of confidence for the troubled US chipmaker in the middle of a turnaround.
Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product road map and challenges in attracting customers to its new factories.
Trump confirms Nvidia deal to sell lower-end chips to China
Trump confirms Nvidia deal to sell lower-end chips to China
Trump, who met with Tan on August 11, has taken an unprecedented approach to national security.