"I should have asked for a bigger stake," Trump stated in a Fortune interview, referring to the U.S. government's equity position in Intel.
Government Stake and Statements
In August, the U.S. government acquired an equity stake in Intel. The exact size of the stake has been reported differently across sources, with some stating 9.9% and others 10%. The investment, provided under the CHIPS and Science Act, was valued at approximately $8.9 billion. This included $5.7 billion in CHIPS Act grants and $3.2 billion from other government awards. The government's stake was reportedly obtained via a conversion of these grants and awards.
In the Fortune interview, President Trump stated he asked Intel CEO Lip-Bu Tan for a 10% ownership stake, which Tan agreed to. Trump later remarked he should have asked for a larger stake. He questioned whether he receives credit for the deal and suggested the government could exit its position by selling shares gradually to avoid impacting the stock price.
President Trump also claimed that if he had been president when chip manufacturing moved to China, he would have imposed tariffs to protect Intel. He added that Intel would be the world's largest company and that TSMC would not exist under those circumstances. The interview took place before a visit to Beijing, which concluded without major trade breakthroughs.
Chip Sector Market Activity
A significant rally in semiconductor stocks occurred on Friday, driven by multiple factors, including a report from the Wall Street Journal that Apple and Intel have reached a preliminary agreement for Intel to manufacture chips for Apple devices. Specific products were not disclosed.
Intel Stock Performance:
- Intel shares rose approximately 14% on Friday, its largest single-day gain since April 24.
- Following the Apple partnership report, the stock hit a fourth consecutive intraday record high.
- Since the U.S. government announced its stake in August, Intel's share price has risen by 75%. One source puts the overall increase since the acquisition at over 300%, while another notes the stock had already surpassed its 2000 peak prior to the report.
- Intel stock gained 100% in April.
Broader Market Impact:
- Other chip and AI-related companies also saw gains in pre-market and regular trading, including Broadcom (up 1.66% pre-market), Micron (up 1.36% pre-market), and AMD (up 0.36% pre-market).
- Combined market value increases for Intel, Micron, and Nvidia totaled nearly $280 billion. Top chip gainers added over $440 billion in market value combined.
European Market Activity:
- European semiconductor-related companies also advanced. ASML, a manufacturer of advanced computer chip machinery, gained 5.37%, and ASMI, a producer of semiconductor manufacturing equipment, rose by 4.53% on Friday.
Industry Context
The chip sector rally occurred as memory chip firms saw gains at the beginning of the year, driven by their role in training and operating artificial intelligence systems. Bank of America has predicted that the CPU market could double by 2030.