**Intel’s Stock Climb Amid Government Stake Discussions**
Intel’s shares saw a notable rise in late trading today, propelled by reports that the Trump administration is engaging in talks to secure a stake in the firm. This news follows President Trump’s recent demand for the resignation of Intel CEO Lip-Bu Tan, which was succeeded by a meeting between the two.
**Government’s Interest in Intel**
As stated in a Bloomberg report, the Trump administration’s interest in Intel is part of a larger initiative to strengthen the company’s proposed factory hub in Ohio. This site was originally expected to be the largest chip manufacturing facility in the world, but has encountered multiple delays, extending its completion date into the 2030s. The discussions regarding the potential stake are still in the early stages, with details about the size of the stake still undetermined.
Intel’s shares, which had previously grown by 7.38% throughout the day, experienced an added boost of 3.2% in after-hours trading following the news.
**Background of the Discussions**
The discussions seem to be a direct result of a recent meeting between President Trump and CEO Lip-Bu Tan. This meeting occurred after Trump’s public disparagement of Tan, referring to him as “highly CONFLICTED.” This comment arose from Tan’s past leadership position at Cadence Design, a company that recently admitted guilt to charges tied to selling chip-design products to a Chinese military university.
While Intel has opted not to comment on the potential arrangement, the company did convey its dedication to aiding the Trump administration’s initiatives to enhance U.S. technology and manufacturing prowess. The White House has yet to issue any remarks regarding the discussions.
**Conclusion**
As the situation progresses, the ramifications of a government stake in Intel could significantly influence the company’s trajectory and the semiconductor sector at large. Investors and market watchers will closely monitor for more updates on this unfolding narrative.
