On Thursday, Intel’s stock surged almost 7% as rumors circulated that the Trump government is in discussions to acquire a share in the chipmaker. Although the amount of the possible investment is unclear, Bloomberg stated that the anticipated acquisition would boost the technology company’s aspirations to establish a manufacturing cluster in Ohio.
According to White House spokesperson Kush Desai, “discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration. The story is published a few days after US President Donald Trump met with Intel CEO Lip-Bu Tan and accused him of being “highly conflicted” because of his past connections to China.
Bloomberg reports that Intel’s spokeswoman stated that the company is “deeply committed to supporting President Trump’s efforts to strengthen US technology and manufacturing leadership” but declined to comment on the talks. According to the article, the share and pricing specifics are still up for debate.
According to tech expert David Nicholson of market research firm The Futurum Group, the rumored move would provide Intel with a “lifeline” by providing them with government backing and cash.
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