President Donald Trump on Monday vocally defended the United States’ 10% stake in Intel, criticizing those who opposed the significant deal. “I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS,” Trump declared on Truth Social just before the stock market opened. He emphasized that the entire value accrues to the U.S. and questioned the negative reactions, stating he would pursue such lucrative deals for the nation “all day long.”
Intel shares have seen a notable boost, gaining 28% this month following the agreement designed to support the chip manufacturer and promote domestically produced semiconductors. White House economic advisor Kevin Hassett indicated that the administration is exploring similar transactions.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 25.11 | +0.32 | +1.27% |
“I’m sure that at some point there’ll be more transactions, if not in this industry, then other industries,” Hassett told the media. The $11 billion stake represents a mix of common stock and grants provided under the U.S. CHIPS and Science Act. This legislation was established during the Biden administration, and its predecessor, former CEO Pat Gelsinger, had previously been removed from his role.
Then-Intel CEO Pat Gelsinger shows President Joe Biden a processor and semiconductor wafer during a tour at the Intel Ocotillo Campus in Chandler, Arizona, on March 20, 2024.
Larry Lindsey, a former director of the National Economic Council, commented on the situation. “The government intervention in the free-market economy happened when the CHIPS Act was passed,” he explained. “It was a grant. And what President Trump has done is turn that grant into an equity position.” Lindsey added, “So I don’t think there’s any increase in socialism here. I think socialism was already committed when we started allocating capital the way we did back then.”
President Donald Trump, left, and Intel CEO Lip-Bu Tan.
Intel CEO Lip-Bu Tan will retain his leadership position following President Trump’s decision to withdraw his earlier suggestion for Tan’s dismissal, which was reportedly due to concerns about Tan’s connections to China.
Tan stated, “As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American-made.” The investment aims to help Intel improve its market standing. The company reported a second-quarter loss of $2.9 billion, or $0.67 per share, with revenue of $12.9 billion remaining largely unchanged from the previous year.
