Intel stock rises as Trump says chipmaker has agreed to sell stake to government

Core Viewpoint - The U.S. government is considering taking a 10% equity stake in Intel Corp. as part of a shift in industrial policy, which has led to a rise in Intel's stock price by approximately 6% following the news [1][2][3]. Group 1: Government Involvement - President Trump indicated that the government should receive about 10% of Intel, which has a market capitalization of just over $100 billion [1]. - Commerce Secretary Howard Lutnick stated that the government is seeking an equity stake in exchange for funds from the CHIPS Act [3][4]. - The government's stake is expected to be nonvoting, and discussions with Intel are ongoing [2][4]. Group 2: Intel's Financial Moves - Intel recently secured a $2 billion investment from SoftBank, representing about 2% of the company [4]. - The company has been investing billions to establish chip factories in Ohio, aiming to produce advanced chips, including those for AI [5]. - Intel's Ohio factory is now projected to begin operations in 2030, with construction slowed down based on market conditions [6]. Group 3: Market Position and Competition - Intel is currently the only American company capable of manufacturing the most advanced chips domestically, although it is perceived to be lagging behind Taiwan Semiconductor Manufacturing Company [5]. - The company had previously finalized nearly $8 billion in grants under the CHIPS and Science Act to support its factory-building initiatives [6].