US to take 10% equity stake in Intel: Trump

President Donald Trump said on Friday the US would take a 10% stake in Intel under a deal with the struggling chipmaker that converts government grants into an equity share, the latest extraordinary intervention by the White House in corporate America.

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The deal puts Trump on better terms with Intel CEO Lip-Bu Tan, after the president recently said the CEO should step down due to conflicts of interest.

It will ensure that the chipmaker will receive about $10 billion in funds for building or expanding factories in the US

Under the agreement, the US will purchase a 9.9% stake in Intel for $8.9 billion, or $20.47 per share, which represents a discount of about $4 from Intel’s closing share price of $24.80 on Friday.

The purchase of the 433.3 million Intel shares will be made with funding from the $5.7 billion in unpaid grants from the Biden-era CHIPS Act and $3.2 billion awarded to Intel for the Secure Enclave programme, also awarded under Trump's predecessor, Democratic President Joe Biden.

Intel stock rose roughly 1% in the extended session on Friday after closing up 5.5% during regular trading.

Trump met with Tan on Friday, a White House official said. That followed Trump's August 11 meeting with the Intel CEO after Trump demanded that Tan resign over his ties to Chinese firms.