U.S. Government Eyes Stake in Intel Amidst Chipmaker's Crisis

The U.S. Treasury Secretary and Commerce Secretary discussed potential U.S. government investment in Intel to stabilize the struggling chipmaker. There are considerations for a 10% equity stake, aligning with a shift in policy to receive equity for financial support. Intel faces financial and competitive challenges.

In a bid to stabilize Intel, the beleaguered chip manufacturer, U.S. Treasury Secretary Scott Bessent indicated that any investment would be aimed at supporting its domestic chip production capacity. The discussion comes amid reports of the U.S. government considering acquiring a 10% stake in the company.

The possibility of the U.S. stake in Intel follows a Bloomberg News report that has stirred significant interest. According to Bessent, the investment will not obligate U.S. companies to purchase chips from Intel; however, details concerning the scale and timing of this investment are yet to be cemented.

This dialogue arises as SoftBank Group pledges a $2 billion investment in Intel. Commerce Secretary Howard Lutnick criticized the Biden administration's previous approach of distributing grants without returns. Under former President Trump, there's now a push for receiving equity in exchange for government support, in a move to safeguard American taxpayer interests.

(With inputs from agencies.)