The US government has earned more than $30 billion from its holdings in Intel in recent months, President Trump said on Wednesday. It followed his backing for the chipmaker, which was facing mounting challenges.“Intel stock continues to rise. I’m very proud of that company in that I am responsible for making the United States of America over 30 billion dollars in the last 90 days on that stock alone,” Trump posted on Truth Social.
“There are others that, likewise, I have been very successful with by taking pieces of the equity for support. Congratulations to Intel on doing such a great job and, more importantly, congratulations to the people of the United States for making such a good investment!” he concluded.
In an announcement last August, the President said Intel had agreed to provide the US government with a 10% stake. The government invested $8.9 billion to purchase 433.3 million shares, each priced at $20.47. Of this, $5.7 billion came via grants under the CHIPS and Science Act, while the remaining $3.2 billion was channelled through a separate scheme aimed at strengthening secure chip production, Intel said.
ALSO READ | Intel to buy back Apollo stake in Ireland factory for $14.2 billionPreviously assigned funds from the Biden administration were reassigned, with Commerce Secretary Howard Lutnick emphasising the investment’s role in boosting domestic semiconductor production.At the time of the purchase, Trump posted on Truth Social, “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.”The deal includes an option for the US government to buy an additional 5% of Intel if the company no longer retains a controlling stake in its foundry operations. The chipmaker said the arrangement does not extend to board membership or governance powers for Washington.According to Bloomberg, beyond its support for Intel, the Trump administration has announced over a dozen initiatives to shore up vital industries, including rare earths, steelmaking and nuclear power. The President is also assessing a potential rescue of Spirit Airlines, which could result in the US government owning up to 90% of the airline post-bankruptcy.
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