Commerce Secretary Howard Lunick said on Tuesday that Intel Must give the United States government a equity participation in the company in exchange for the funds of the flea law.
“We should get a participation for our money,” said Lodnick on “Squawk on the Street” of CNBC on Tuesday. “We will therefore deliver the money, which was already committed as part of the Biden administration. We will obtain equity in return.”
The actions of the manufacturer of flea in difficulty climbed by 7% on Tuesday, continuing to come together on recent reports according to which the Trump administration weighs different ways of getting involved in the company.
Bloomberg reported on Monday that the White House discussed a 10% stake in Intel, in an agreement that could see the US government becoming the largest shareholder of the flea manufacturer.
Intel and SoftBank announced on Monday that the Japanese conglomerate would make an investment of $ 2 billion in the flea manufacturer. The investment, equal to around 2% of Intel, made SoftBank the largest fifth shareholder, according to FostSet.
Lutnick said any potential arrangement would not provide the government with voting or governance rights in Intel.
“It is not governance, we simply convert what was a subsidy under equity in equity for the Trump administration, for the American people,” said Lunick. “Not void.”
Intel refused to comment.
Lutnick also suggested that President Donald Trump could seek similar agreements with other chip recipients.
Intel received around $ 7.9 billion in grants. Taiwan Semiconductor Manufacturing Co. received $ 6.6 billion under legislation to stimulate flea manufacturing in its Arizona facilities.
“The Biden administration literally gave Intel for free and gave TSMC money free of charge, and all these companies just giving them money for free,” said Libnick. “Donald Trump transforms this by saying,” Hey, we want capital for money. If we want to give you the money, we want a piece of the action. “”
Trump called for more reshaping of American manufacturing to reduce the country’s dependence to businesses like Samsung and TSMC to make fleas.
Intel has struggled to capitalize on the boom of artificial intelligence in advanced semiconductors and spent massively to develop a manufacturing company that has not yet secured an important customer. Intel typed Lip-Bu tan to be his CEO in March after his predecessor, Pat Gelsinger, was ousted in December.
Tan met Trump at the White House last week after the president called for his resignation, alleging that he had links with China.
Intel 5 days Stock Thatl.
– KIF Leswing from CNBC contributed to this report.
