After concerns were raised by congress that Intel’s current CEO Lip-Bu Tan was a venture capitalist investing in Chinese companies, a concern shared by President Trump, apparently things have changed considerably.
Mr. Lip-Bu Tan came to the White House to address concerns about protecting U.S. national security interests. President Trump announces the U.S. government now has a 10% stake in the tech firm.
President Trump (Truth Social) – “It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future. I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter.”
Intel has been struggling for the past several years, and President Trump has been focused on getting Semiconductor and Chip manufacturing established in the USA, a big national security issue. The Trump administration has been negotiating a 10% stake in Intel by converting grants the company was awarded under former President Joe Biden.
Obviously, I’m not a big fan of government collaboration with private corporations, but this approach aligns with a very specific national security issue. This sounds like something Commerce Secretary Lutnick and President Trump would structure as a win/win.
“The government’s investment in Intel will be a passive ownership, with no Board representation or other governance or information rights. The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions.”