Trump Administration Considers Stake in Intel? Chen Liwu’s Continuation in Office Likely as Stock Price Surges 7%
According to Bloomberg, the Trump administration is in talks with Intel, considering a federal government investment in the struggling semiconductor company to strengthen the government’s chip manufacturing program in Ohio. Following the news, Intel’s stock price surged by 7% in a single day.
Negotiations for Investment Ongoing, Chen Lifeng Expected to Continue Leading Intel
According to Bloomberg, the Trump administration has recently been in active contact with senior officials at Intel, discussing the possibility of the government holding a stake in the company to support Intel’s plans for a large chip production base being established in Ohio. This facility was originally positioned to be the world’s largest semiconductor manufacturing center, but construction progress has faced multiple delays.
The image shows a conceptual design of the Intel chip factory.
The investment plan is still in the discussion phase, with government officials indicating that funding will come from the federal budget, but emphasizing that no decisions have been finalized yet.
Notably, Just a Week Ago, Trump Publicly Called for the Replacement of Current Intel CEO Chen Lifeng, Questioning His Past Relationships with China for Potential Conflicts of Interest. Now, with the government shifting to discuss investment matters, it can be inferred that Chen Lifeng is likely to remain as CEO in the short term.
(Endangering National Security? Trump Furious, Demands Intel CEO Chen Lifeng Resign Immediately! Stock Prices Plummet in Response)
Intel Faces Financial Pressure, Ohio Plant Plans Continually Delayed
Intel once dominated the semiconductor industry, but in recent years, its market share and technological advantages have continued to decline, leading to worsening financial conditions. Former CEO Pat Gelsinger viewed the Ohio plant as a key project for Intel’s resurgence, but earlier this year, he pushed back the completion timeline to after 2030 and further slowed construction progress in July.
Since taking over in March of this year, Chen Lifeng has prioritized improving the company’s financial situation. Although Intel was originally expected to be the biggest beneficiary of the Biden Administration’s 2022 Chips and Science Act, the outlook for the project during Trump’s administration is fraught with uncertainty.
Earlier this year, the Trump administration even considered a collaboration between TSMC and Intel, but TSMC CEO C. C. Wei has explicitly stated that the company will focus on its core business.
(C. C. Wei Dismisses Rumors: TSMC is Not Collaborating with Intel, Let Alone Sharing Technology)
Frequent Intervention of the Trump Administration in Key Domestic Industries
This is not the first time Trump has directly intervened in corporate decision-making. Since the beginning of this year, agreements have been reached with semiconductor companies like NVIDIA and AMD, collecting a 15% share from their chip sales to China.
In the transaction of the U.S. Steel Company being sold to Japan’s Nippon Steel, a so-called “golden share” was obtained.
In July, the U.S. Department of Defense announced an investment of $400 million in American rare earth producer MP Materials, becoming the company’s largest shareholder. Such actions break the traditional boundaries between government and private enterprises, providing support to industries of strategic national security significance through equity investments, government procurement, loans, and private funding combinations.
Market Reaction is Strong, Responses from All Sides are Cautious
After the negotiation news broke, Intel’s stock price closed at $23.86, rising 7.38%, with a market capitalization of approximately $104.4 billion, and in after-hours trading, it further increased by over 4%.
White House spokesperson Kush Desai commented:
“Discussions related to hypothetical investments should be regarded as speculation until formally announced.”
Intel released a statement indicating that it will fully support Trump’s efforts to enhance America’s leadership in technology and manufacturing, but will not comment on “rumors or speculation.”
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