SANTA CLARA (dpa-AFX) - The Trump administration is in talks with Intel Corp. (INTC) about the U.S. government taking a stake in the struggling chipmaker, Bloomberg reported citing people familiar with the plan. The size of the potential investment remains unclear.
INTC closed Thursday's regular trading at $23.86 up $1.64 or 7.38%. In the after-hours trading, the stock further gained $1.07 or 4.48%.
A deal would support Intel's plans to build a major chipmaking hub in Ohio. The company had once promised to turn that site into the world's largest chipmaking facility, though it's been repeatedly delayed.
The discussions follow President Donald Trump's recent call for the removal of Intel CEO Lip-Bu Tan, citing concerns over his past ties to China.
The proposal reportedly emerged from a meeting between Trump and Tan earlier this week. While details are still being finalized, the U.S. government would fund the stake. However, the report noted that the talks are fluid and may not result in an agreement.
Any deal would strengthen Intel's financial position amid cost-cutting measures and job reductions. Despite recent tensions, the report suggests Tan is expected to remain Chief Executive officer.
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