Intel shares jump after report of possible US stake in chipmaker

Intel's shares rose sharply by more than 7 percent on Thursday after news reports suggested that the US government might buy a stake in the famous chipmaker. The possible deal would help Intel build a major manufacturing center in Ohio, although the exact size of the government's stake is still unknown. A White House spokesperson said that people should treat these reports as speculation unless the government makes an official announcement. This news comes just days after Intel's CEO, Lip-Bu Tan, met with President Trump. President Trump had previously criticized Mr Tan because of his past connections to China. The BBC tried to get a comment from Intel, but the company did not respond directly about the talks. Instead, Intel said it is committed to supporting President Trump's efforts to make US technology and manufacturing stronger. Bloomberg reported that the details of the deal, including the price and size of the stake, are still being discussed.

Experts say that if the government invests in Intel, it could be a lifeline for the company. Intel has struggled in recent years, especially in the race to develop chips for artificial intelligence. Rival companies like Nvidia have moved ahead, and Intel's market value has dropped by more than half since 2020. Tech analyst David Nicholson said that this deal would show a closer relationship between the US government and private companies, similar to what is happening in China. This week, other chip companies like Nvidia and AMD also agreed to pay the US government, showing more government involvement in the tech industry. Some people think it is unfair for Intel to get special help, but most experts agree that it is important for the US to support its own chipmakers. Intel is one of the few American companies that can make advanced semiconductors in large numbers. The planned factory in Ohio is a key part of Intel's future, but the project has faced many delays.

It is unusual for the US government to directly support a single company, but some analysts say that Intel is a special case. The US needs to keep up with global competitors like TSMC and Samsung, and the Ohio factory would help the country make high-end chips at home. Experts believe the government will not try to buy a majority of Intel, but just enough to have some influence. Raymond Woo from Kyoto University Innovation Capital said that supporting Intel is risky because the company has fallen behind its rivals. He suggested that the government could also help other American chipmakers, including smaller ones, or offer them incentives. Lip-Bu Tan became Intel's CEO in March and has focused on fixing the company's finances and catching up in the AI chip industry. Last week, President Trump called for Mr Tan to resign, mentioning his past investments in companies linked to the Chinese military.

The possible deal between Intel and the US government is important for national security and the future of American technology. If Intel gets government support, it could build the world's largest chip factory and help the US compete with other countries. Some people worry about fairness, but most agree that strong American chipmakers are vital for the country's economy and security. The talks are still ongoing, and it remains to be seen what will happen next.