The US government may take a stake in Intel.
The beleaguered chipmaker lost $19 billion last year and revenues are down 16% in two years. As the only major semiconductor manufacturer that makes its products in the US — Nvidia outsources production to Taiwan — it is “a jewel asset” for the US, The Information’s Martin Peers argued.
The government has taken stock in major companies before, notably auto manufacturers during the financial crisis, but it is nonetheless a sign of Trump’s willingness to directly intervene in business after demanding 15% of Nvidia’s China revenues. Intel shares jumped on the news, Bloomberg reported, although Peers said Trump’s “desire to control everything” could be bad news if he tries to micromanage the company.