The Trump administration is considering taking a stake in Intel to boost the struggling U.S. chipmaker, according to Commerce Secretary Howard Lutnick. The money for the stake would come from previously allocated Biden-era funding, with media reports suggesting a 10% stake using CHIPS and Science Act grants. Lutnick believes that the American taxpayer should benefit from the bargain, as he believes the company should receive an equity state for its $100 billion investment.
The Commerce secretary’s comments come just two weeks after President Trump called on Intel CEO Lip-Bu Tan to resign, accusing him of being “highly conflicted” following Sen. Tom Cotton’s letter to the company, voicing concerns about the CEO’s investments in Chinese companies and his previous role at Cadence Design Systems. The software firm recently pleaded guilty to violating export controls by selling chip design technology to a Chinese military university during Tan’s tenure.
Lutnick pointed to the administration’s national security concerns about chip production, stating that they cannot rely on Taiwan, which is 9,500 miles away from the U.S. and only 80 miles from China. He suggested that Intel could be capable of making a U.S. node or U.S. transistor, driving that in America, which would be a good thing to have as an American participant in the semiconductor space.
