US Government Takes 10-Percent Stake in Intel, Donald Trump Says
The U.S. government took a 10-percent stake in Intel Corporation, speaking President Trump in a media talk held at the White House on Friday. The announcement came after a meeting between Tan and President Trump, where the CEO of Intel met concerning mounting financial issues for the company. The Intel stock gained nearly 5.53 percent on Friday when news emerged of government investment in the company.
Details of the Acquisition Meeting
Trump recounted how it all began with the delegation sent to the White House by the senator to gain clarification around Tan's ties to China. That was when the proposal for a 10-percent government stake was put forth by Trump.
"He came in and he saw me, we talked for a while," Trump recalled. "I liked him a lot... I thought he was somewhat a victim, but you know, nobody's a total victim, I guess."
President Trump next described how he asserted himself in the proposal. He recalls that when the Intel CEO said he "would consider" the offer, Trump replied, "Well, I would like you to do that, because, Intel's been left behind, as you know, compared to Jensen and some of our friends, NVIDIA."
The Wider U.S. Manufacturing Strategy
This investment is aligned with the Trump administration's objectives to strengthen American manufacturing, more specifically in the critically important semiconductor sector. Intel is the only U.S. company that is capable of fabricating state-of-the-art chips. The broader strategy also encompasses the administration's effort to see Taiwan's TSMC commit another $100 billion toward its U.S. manufacturing base.
President Trump bemoaned Intel's fall into obscurity by declaring that "Intel was the biggest, most powerful chip company in the world" which fell behind its now foreign competitors due to "some bad management over the years."
For Intel, A "Great Deal"
The President stated that the Intel CEO agreed to the proposal in the end. "This comes to the United States of America, and I said, I think it would be good having the United States as your partner. He agreed. And they've agreed to do it."
He ended by stating the investment was a big win for the country:
"And I think it's a great deal. He walked in, wanting to keep his job, and he ended up giving us ten billion dollars for the United States. So we picked up ten billion. And, we do a lot of deals like that."
