Trump Says Intel Has ‘Agreed’ to Give 10% Equity Stake to Government

President Donald Trump. (Photo by Andrew Harnik/Getty Images)

The U.S. government may soon be a large investor in Intel.

On Friday, President Donald Trump said Intel has agreed to give a 10% equity stake in the company to the government.

“They’ve agreed to do it and I think it’s a great deal for them,” Trump said at the White House, referring to Intel.

Intel stock was up as much as 7% after Trump’s remarks.

The White House didn’t immediately respond to a request for comment about Trump’s remarks. Intel declined to comment.

Earlier this week, Intel announced a $2 billion investment from Japan’s Softbank. The announcement of the SoftBank investment came after reports that Intel is talking to the Trump administration about the government taking a stake in the company of up to 10%. The Wall Street Journal had reported Intel could convert some of the billions of dollars it is set to receive from the 2022 Chips and Science Act into equity.

It is unknown if the government equity stake will come from the Chips Act funds.

Write to Tae Kim at tae.kim@barrons.com