Intel CEO Lip-Bu Tan and President Trump: Negotiation Breakdown for a 10% Stake in the Company

This is not investment advice. The author does not hold any positions in the stocks referenced herein.

In a recent address at the White House, President Trump detailed his conversation with Intel’s CEO, Lip-Bu Tan, which resulted in a significant 10% equity stake acquisition by the US government in Intel. Following this announcement, Intel’s stock saw a notable surge, closing up by 5.53% amid a positive tide filtering through the tech sector, coupled with the government’s investment aimed at stabilizing the company’s financial landscape.

President Trump Describes US Government’s 10% Intel Stake as “A Great Deal”

The strategic investment into Intel aligns with the Trump administration’s broader initiative to bolster American manufacturing capabilities. As the sole company in the US equipped to produce advanced chips, Intel plays a pivotal role in this strategy. Concurrently, the administration has also influenced Taiwan Semiconductors Manufacturing Company (TSMC) to enhance its American presence, with a commitment of an additional $100 billion for the establishment of a domestic manufacturing base.

During his address, President Trump reflected on his meeting with Tan, noting, “He came in and he saw me, we talked for a while.”He expressed admiration for Tan, stating, “I liked him a lot; I thought he was somewhat a victim, but you know, nobody’s a total victim, I guess.”This dialogue followed concerns raised by a senator regarding Tan’s connections to China.

President Trump speaking at a press event — President Trump addressing reporters at the White House.

The discussion turned assertive as Trump encouraged Tan to consider the US stake, stating, “Well, I’d like you to do that, because Intel’s been left behind, as you know, compared to Jensen and some of our friends, NVIDIA.”The President expressed his disappointment that “Intel was the biggest, most powerful chip company in the world, ”yet it had lost its competitive edge to overseas manufacturers.

Expounding further on his conversations, Trump articulated, “This comes to the United States of America, and I said, I think it would be good having the United States as your partner. He agreed. And they’ve agreed to do it.”He reiterated his belief that the partnership would be beneficial for both parties.

Concluding his remarks, President Trump emphasized the advantageous nature of the government’s stake in Intel:

“And I think it’s a great deal. He walked in, wanting to keep his job, and he ended up giving us ten billion dollars for the United States. So we picked up ten billion. And, we do a lot of deals like that. I’ll do more of them. If somebody has, like we have restrictive covenants with Jensen, we have, that’s NVIDIA.”

For further details, you can access the original source here.