President Donald Trump said Intel agreed to give the U.S. government a 10% stake in the company after a meeting with Intel CEO Lip Bu Tan. The deal follows SoftBank's disclosure of a 2% stake and an expected official announcement. The administration aims to convert previously pledged government grants into equity, which would make the U.S. a major Intel shareholder and blur public-private boundaries. The administration is also imposing export-related commissions on Nvidia and AMD sales in China. The move is driven by a desire to boost domestic chip production and reduce reliance on overseas manufacturers.
The Trump administration has been 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.
Why would Trump do this? 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.
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