Chip manufacturing in the U.S.
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Intel stock climbs 7% on report Trump administration is considering stake
CNBCยท 2025-08-14 19:51
Group 1 - Intel's stock rose by 7% following reports of discussions between the Trump administration and the company regarding a potential government stake [1] - Intel is the only U.S. company capable of manufacturing the fastest chips domestically, while competitors like TSMC and Samsung also have U.S. facilities [2] - The potential government stake is intended to help fund Intel's factories currently under construction in Ohio [2] Group 2 - The discussions come after Intel CEO Lip-Bu Tan's visit to the White House, which followed President Trump's call for Tan's resignation due to alleged ties to China [3] - Intel has stated that Tan is committed to advancing U.S. national and economic security interests [3] - An Intel spokesperson declined to comment on the ongoing discussions, emphasizing a focus on shared priorities with the Trump administration [4] Group 3 - Tan took over Intel earlier this year amid challenges in gaining market share in AI chips and significant investments in the foundry business [4] - Intel's foundry business has not yet secured a major customer, which is critical for confidence in new factory investments [5] - In July, Intel announced the cancellation of manufacturing plans in Germany and Poland, and a slowdown in development in Ohio, with a focus on scrutinizing spending [5] Group 4 - The U.S. government has increasingly positioned itself in major industry deals, including taking a 15% stake in certain Nvidia and AMD chip sales to China and a $400 million equity stake in MP Materials [6]