US President Donald Trump said that the US government had reached a deal with Intel to take a 10 per cent stake in the American chipmaker in return for federal subsidies, hinting that his administration is seeking to forge more such deals.
Trump made the remarks during a press availability, touching on his recent talks with Intel CEO Lip-Bu Tan, as concerns linger that Washington could also consider seeking a stake in foreign companies, including Samsung Electronics, a winner of U.S. grants under the 2022 CHIPS and Science Act, reports Yonhap news agency.
"He walked in, wanting to keep his job, and he ended up giving us $10 billion for the United States. So, we picked up $10 billion," Trump said, referring to the value of a 10 percent stake in Intel. Earlier this month, he called for the Intel chief to resign over his alleged ties to China.
"We do a lot of deals like that. I'll do more of them," he added.
In a social media post later in the day, Trump said that the U.S. now "fully owns and controls" 10 percent of Intel, saying the shares are now valued at around $11 billion.
"I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars," Trump wrote on Truth Social.
"This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN!," he added.
On Thursday, the Wall Street Journal reported, citing a U.S. official, that the Trump administration is considering taking stakes in firms receiving funds from the CHIPS Act, but has no plans to seek shares in bigger chipmakers that are boosting their investments in the U.S.
Late last year, the administration of former President Joe Biden announced that it had awarded Samsung up to $4.75 billion in direct funding to support the company's chipmaking investment in central Texas.
(With inputs from IANS)
