U.S. seeks fairness stake in Intel in return for funding

U.S. Commerce Secretary Howard Lutnick stated Tuesday that chipmaker Intel ought to give the federal government an fairness stake within the firm in change for grants earlier dedicated by former president Joe Biden’s administration.

“We should get an equity stake for our money,” Mr. Lutnick informed CNBC in an interview. “So we’ll deliver the money which was already committed under the Biden administration. We’ll get equity in return for it.”

Mr. Lutnick’s feedback got here on the again of a information report that the U.S. authorities was contemplating taking a 10-percent stake in Intel.

White House Press Secretary Karoline Leavitt confirmed Tuesday that Lutnick and the Commerce Department have been engaged on the matter.

“I know Secretary Lutnick is working on it and ironing out the details,” she informed reporters, calling such a deal a “creative idea.”

Intel shares have been up 7.2 % on Tuesday afternoon.

This week, Japan-based tech investor SoftBank Group additionally stated it could make investments $2 billion in Intel.

But Mr. Lutnick informed CNBC that any potential association wouldn’t give the administration governing or voting rights in Intel.

He criticised grants dedicated below the CHIPS and Science Act, a serious regulation handed throughout Mr. Biden’s time period, as funding that was going to be merely given away.

The regulation was aimed toward strengthening the U.S. semiconductor trade, and the Biden administration had unveiled billions in grants by it.

Asked concerning the standing of latest U.S. tariff offers with Japan and South Korea, which have been to come back with funding commitments as nicely, Mr. Lutnick stated Tuesday that the general public was “weeks away” from getting extra particulars on the pacts.