Intel shares saw a modest bump in after-hours trading following a social media endorsement from President Donald Trump, who highlighted the U.S. government’s significant stake in the semiconductor giant. The President announced he had concluded a “great meeting” with Intel’s CEO, Lip-Bu Tan, and expressed pride in the government’s position as a shareholder.
This government investment, which materialized as a 10% equity stake valued at $8.9 billion in August, stems from grants and awards allocated under the CHIPS Act, aimed at bolstering domestic semiconductor manufacturing. Trump’s post emphasized the substantial financial returns already generated for the American people, stating, “Tens of Billions of Dollars for the American People — IN JUST FOUR MONTHS.” He further asserted, “We made a GREAT Deal, and so did Intel. Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!!”
Since the initial investment announcement by the Trump administration, Intel’s stock performance has been robust, with shares climbing approximately 75%. This surge has increased the government’s stake to over $18 billion, positioning the U.S. as Intel’s largest shareholder.
Lip-Bu Tan assumed the CEO role at Intel in March, stepping in during a period where the company had faced increasing competition from Advanced Micro Devices (AMD) and Nvidia, as well as from manufacturers utilizing Arm-based architectures known for their power efficiency. Despite these challenges, Intel remains a critical provider of processors for personal computers and server infrastructure.
Earlier in the year, Intel had announced plans to reduce its workforce by several thousand employees and had signaled a recalibration of its chip production strategies in both the U.S. and Europe, with a major Ohio facility slated for operation around 2030-2031.
There had been a previous public exchange between President Trump and CEO Tan. In August, Trump had publicly called for Tan’s resignation, citing concerns about potential conflicts of interest, prompted in part by inquiries from Senator Tom Cotton regarding Tan’s extensive investment history in Chinese technology firms. Tan, who has a background in Malaysia and Singapore, had reportedly invested in hundreds of Chinese tech companies. However, this stance softened shortly after an August meeting, where Trump praised Tan’s “amazing story,” paving the way for the subsequent government investment.
Adding to the recent positive developments, Intel showcased its latest advancements at the Consumer Electronics Show (CES) in Las Vegas, announcing the availability of its 2-nanometer Intel Core Ultra Series 3 PC chips. Intel has touted this manufacturing process as the most advanced developed and produced within the United States. President Trump explicitly referenced this achievement in his recent post: “Intel just launched the first SUB 2 NANOMETER CPU PROCESSOR designed, built, and packaged right here in the U.S.A.”
This strategic push towards domestic chip fabrication, involving substantial capital commitments from Intel, also underscores the complex global supply chain dynamics. Like its counterparts, including AMD and Nvidia, Intel continues to rely on external manufacturing partners such as Taiwan Semiconductor Manufacturing Company (TSMC). The company’s commitment to building out its domestic fabrication capabilities, supported by government initiatives like the CHIPS Act, aims to mitigate some of these dependencies and bolster national technological sovereignty.
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