Trump Seeks 10% Stake in Intel After SoftBank's $2 Billion Investment Despite Years of Criticism

President Donald Trump's administration is pushing for the US government to take a 10% stake in Intel, marking a surprising turn after years of criticism toward the chipmaker.

The move follows SoftBank's $2 billion investment in Intel, signaling renewed confidence in the company's future, Yahoo said.

Commerce Secretary Howard Lutnick confirmed the plan in a CNBC interview on Tuesday, saying the government wants to convert grants from the CHIPS and Science Act into non-voting shares of Intel stock.

"We think America should get the benefit of the bargain," Lutnick said, calling the move "the right one" for US taxpayers.

Intel has already received about $2.2 billion from the federal CHIPS Act, out of a total of $7.8 billion pledged.

Instead of continuing as a grant, the Trump administration wants the money turned into equity—making the government one of the company's largest shareholders without having control over company decisions.

Trump Seeks Major Stake in Intel Amid SoftBank Investment

This investment comes shortly after Japan's SoftBank Group announced it would take a 2% stake in Intel, purchasing shares at $23 each. That news pushed Intel's stock up nearly 7%, closing at $25.31.

SoftBank's founder Masayoshi Son said the investment reflects their belief in the importance of semiconductors and their potential growth in the US.

"Semiconductors are the foundation of every industry," Son said in a statement.

Trump's push for ownership in Intel comes at a time when the company is still struggling. Intel has fallen behind rivals like Nvidia and AMD, especially during the AI boom.

According to AP, its market value remains at about $110 billion, down more than 60% from its peak.

Intel CEO Lip-Bu Tan, who was once under pressure from Trump to resign over past China investments, is now working to turn things around through cost-cutting and factory project delays, including a major chip plant in Ohio.

Despite past friction, Tan stayed on after writing a letter expressing loyalty to the US and later meeting with Trump, who praised him for having an "amazing story." That meeting reportedly helped open the door to current negotiations.

If completed, the stake would mark one of the most significant US government investments in a private company since its 2008 bailout of General Motors, when the government took a 60% stake.

Originally published on vcpost.com