Intel shares jump after report says Trump administration looking at stake | Intel

Intel's shares have increased by 7.4% after the report has been reported that the Trump Administration Insheres to be involved in the fighting US chip maker.

According to Bloomberg, the potential investment that the US government would pay for would be used to develop Intel's Factory Hub in Ohio. It would also help to support the chipmaker's finances at a time Intel has reduced jobs as part of a broader cost reduction drive.

The discussions about the potential investments come from a meeting between US President Donald Trump and the Intel Managing Director Lip-Bu Tan this week, days to Trump demanded Tan to step downHe accused him of having connections to the Chinese Communist Party. Bloomberg suggested that Tan probably remain responsible for the chip maker.

The spokesman for the White House, Kush Desai, commented on the Bloomberg report: “The discussion about hypothetical business should be regarded as speculation, unless the administration was officially announced.”

However, the news still triggered the excitement among investors, with the shares increasing by 8.9% on Thursday, before they closed by 7.4% higher at the end of trade, by $ 23.86 (17.60 GBP). This brought the company's market value to USD 104.4 billion.

Participation in Intel would mark the most important attempt by the Trump government to intervene in the most important private industry. He repeatedly threatened to impose tariffs of up to 100% for imported semiconductors and chips, which Intel could prefer as a semi -conductor based in the USA.

At the beginning of this week, the US government announced a deal that would lead to the chipmaker Nvidia and advanced micro devices Pay 15% of their income from the Chinese KI chip turnover to the US government. Last month, the Department of Defense also announced that it would require a preferred participation of 400 million US dollars in the US -MP materials of the US -SEARD.

An Intel in Intel, however, would mark an U -turn from Trump's latest aggressive rhetoric against the management of the company.

Trump took over the social media platform of truth on Thursday last week to say: “The Intel CEO is very conflict and has to resign immediately. There is no other solution for this problem. Thank you for your attention for this problem!”

Trump's social media outbreak came shortly after the Republican Senator of the US Republican Senator Tom Cotton wrote a letter to the Intel chairman Frank Yeary about TAN's investments and connections to semiconductor companies, which are reported to the KPCH and the People's Liberation Army, the military arm of the party.

In April, Reuters reported This TAN had invested in hundreds of Chinese technology companies, including at least eight with connections to the liberation army of the people.

Intel's Board asked Cotton whether Tan had made his investments and questioned Tan's earlier guidance of Cadence design systems, a company that had sold the products to Chinese technology at the University of the University of Defense last month, which violated US export controls.

Intel said at the time when his board and CEO was “deeply obliged to advance the national and economic security interests and to make considerable investments that are brought into harmony with the first agenda of the president.

Intel was addressed for a comment.