Intel:USA allegedly examining state participation, share price continues to rise
Following Donald Trump's meeting with Intel CEO Lip-Bu Tan, the US government has reportedly begun to consider a state investment. The share price rises.
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The US government is discussing a government stake in the struggling chip company with Intel to support it in its efforts to expand production in the US. This was reported by Bloomberg, citing anonymous people familiar with the discussions. News of “the latest sign of how the White House is ready to blur the lines between government and industry,” according to the financial news agency, has given Intel's share price a huge boost: by the close of trading on Thursday, it had risen by 7.4 percent, pushing Intel's market value above the 100 billion US dollar mark. Neither the Trump administration nor Intel have confirmed the plans.
Help for delayed giant factory in Ohio
According to the report, the talks were initiated following a meeting between Donald Trump and Intel CEO Lip-Bu Tan at the beginning of the week. According to the report, the US President wants to support Intel in the planned construction of a huge factory in the US state of Ohio with a possible investment. This was originally due to start production this year. However, this has already been delayed by up to three years. In March, Intel then announced that it wanted to complete the first part of the factory in 2030. This was to deliver the first chips in 2013, the second part a year later. The Trump government therefore wants to strengthen this planned production facility with the investment. An important election for a seat in the US Senate is due to take place in Ohio next year.
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For Intel, the talks about an investment by the US government represent a 180-degree turnaround, which also explains the jump in the share price on the stock market. Just a few days ago, Donald Trump called for Tan's resignation, but on Monday he visited the White House and received much praise from the US President. What exactly the two discussed with Secretary of Commerce Howard Lutnick and Secretary of the Treasury Scott Bessent was not yet known. Nevertheless, the warm words were enough for an initial rise in the share price, which has now been followed by another. Overall, Intel shares have gained a good 25 percent in value since the beginning of the week.
Intel once dominated the semiconductor market but has now been struggling with problems for years. Nvidia has conquered a leading position, particularly in the business with chips for the AI boom. Intel is also under greater pressure in its traditional business with PC processors and chips for data centers. Under Trump, the US government has already been given a “golden share” in the takeover of US steel company US Steel by Japanese rival Nippon Steel. This means that his approval is required for the relocation of US jobs, plant closures, and major takeovers in the country, among other things. At the beginning of the week, it was also announced that Nvidia and AMD are giving the USA a financial stake in revenues from AI chips in China. There has never been anything comparable there before.
(mho)
