Commerce Secretary Howard Lutnick said Tuesday that Intel indispensable springiness the U.S. authorities an equity involvement successful the institution successful instrumentality for CHIPS Act funds.
"We should get an equity involvement for our money," Lutnick said connected CNBC's "Squawk connected the Street" Tuesday. "So we'll present the money, which was already committed nether the Biden administration. We'll get equity successful instrumentality for it."
Shares of the struggling chipmaker climbed 7% Tuesday, continuing to rally connected caller reports that the Trump medication is weighing antithetic ways to get progressive with the company.
Bloomberg reported Monday that the White House was discussing a 10% involvement successful Intel, successful a woody that could spot the U.S. authorities go the chipmaker's largest shareholder.
Intel and SoftBank announced on Monday that the Japanese conglomerate volition marque a $2 cardinal investment successful the chipmaker. The investment, adjacent to astir 2% of Intel, makes SoftBank the fifth-biggest shareholder, according to FactSet.
Lutnick said immoderate imaginable statement wouldn't supply the authorities with voting oregon governance rights successful Intel.
"It's not governance, we're conscionable converting what was a assistance nether Biden into equity for the Trump administration, for the American people," Lutnick said. "Non-voting."
Intel did not instantly respond to a petition for comment.
Lutnick besides suggested that President Donald Trump could question retired akin deals with different CHIPS recipients.
Intel was awarded astir $7.9 cardinal successful grants. Taiwan Semiconductor Manufacturing Co. was awarded $6.6 cardinal nether the authorities to boost spot fabrication astatine its Arizona facilities.
"The Biden medication virtually was giving Intel for free, and giving TSMC wealth for free, and each these companies conscionable giving them wealth for free," Lutnick said. "Donald Trump turns that into saying, 'Hey, we privation equity for the money. If we're going to springiness you the money, we privation a portion of the action.' "
Trump has called for much reshoring of U.S. manufacturing to trim the country's reliance connected companies similar Samsung and TSMC to manufacture chips.
Intel has struggled to capitalize connected the artificial quality roar successful precocious semiconductors and has spent heavy to basal up a manufacturing concern that's yet to unafraid a important customer. Intel tapped Lip-Bu Tan to beryllium its CEO in March after his predecessor, Pat Gelsinger, was ousted in December.
Tan met with Trump astatine the White House past week aft the president called for his resignation, alleging helium had ties to China.
Intel 5-day banal chart.
-- CNBC's Kif Leswing contributed to this report.
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