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

Intel shares roseate astir 6% connected Friday aft Bloomberg reported that the Trump medication is poised to denote that the U.S. authorities volition instrumentality an equity involvement successful the struggling chipmaker.

Following the report, President Donald Trump said the authorities should get astir 10% of the company, which has a marketplace headdress of conscionable implicit $100 billion.  

"They've agreed to bash it and I deliberation it's a large woody for them," Trump told reporters Friday astatine the White House

White House authoritative told CNBC that determination volition beryllium "ongoing discussions" with Intel, adding that thing has been decided yet and that Intel CEO Lip-Bu Tan hasn't explicitly agreed to a deal. President Trump and Tan volition beryllium gathering aboriginal this afternoon.

A typical for Intel declined to comment.

The determination would people the latest illustration of a chiseled displacement successful U.S. concern policy, with the authorities taking an progressive relation successful the firm America. Commerce Secretary Howard Lutnick told CNBC this week that the U.S. authorities was seeking an equity involvement successful Intel successful speech for CHIPS Act funds.

"We should get an equity involvement for our money," Lutnick said connected CNBC's "Squawk connected the Street." "So we'll present the money, which was already committed nether the Biden administration. We'll get equity successful instrumentality for it."

Lutnick said that the government's involvement would beryllium "nonvoting."

Earlier this week, Intel announced different large backer, erstwhile SoftBank said it would marque a $2 cardinal concern successful the chipmaker, adjacent to astir 2% of the company.

Intel is the lone American institution susceptible of making the astir precocious chips connected U.S. shores, though its exertion is seen arsenic lagging Taiwan Semiconductor Manufacturing Company, which makes chips for companies including Apple, Nvidia, Qualcomm, AMD, and adjacent Intel.

Intel has been spending billions of dollars to physique a bid of spot factories successful Ohio, an country the institution antecedently called the "Silicon Heartland," wherever Intel would beryllium capable to nutrient the astir precocious chips, including for AI.

But successful July, Tan said successful a memo to employees that determination would beryllium "no much blank checks," and that it was slowing down the operation of its Ohio mill complex, depending connected marketplace conditions. Intel's Ohio mill is present scheduled to commencement operations successful 2030.

Intel said past autumn that it had finalized a astir $8 cardinal assistance nether the CHIPS and Science Act to money its factory-building plans. The CHIPS Act was passed successful 2022, nether the Biden administration.

— CNBC's David Sucherman contributed to this report.

WATCH: President Trump says Intel should transportation 10% of institution to government