Following rumors that the Trump administration is in discussions to acquire a share in the chipmaker, Intel’s stock surged more than 7% on Thursday. According to Bloomberg, the alleged agreement would help the technology company’s efforts to establish a manufacturing base in Ohio, however it is unclear how big the possible share would be.
Kush Desai, the spokesperson for the White House, stated that “discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration.” The story was published a few days after US President Donald Trump met with Intel Chief Executive Lip-Bu Tan. Trump had previously called Mr. Tan “highly conflicted” because of his past connections to China.
A representative for the company told Bloomberg that Intel is “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership” but would not comment on the talks. According to the article, discussions are still ongoing over the specifics of the price and stake.
Technological expert David Nicholson of market research firm The Futurum Group said the rumored move would be a “lifeline” for Intel, providing the business with government backing and cash.
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