(Reuters) -The Trump administration is in talks with Intel to have the U.S. government potentially take a stake in the chipmaker, Bloomberg News reported on Thursday, citing people familiar with the plan.
The company’s shares, which closed about 7% higher in regular trading following the report, were last up 2% after the bell.
The plan stems from a meeting this week between President Donald Trump and Intel CEO Lip-Bu Tan, the report said.
This comes after Trump publicly demanded the resignation of Tan over his past investments in Chinese tech companies, some linked to the Chinese military.
Intel declined to comment on the report but said it was deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership.
Any agreement and potential cash infusion will help Intel at a time when the company has been cutting spending and slashing jobs to turn its fortunes around. Once the undisputed leader in chip manufacturing, Intel has lost its position in recent years.
Its stock market value has plummeted to $104 billion from $288 billion in 2020.
The White House did not immediately respond to Reuters’ request for comment.
(Reporting by Jaspreet Singh in Bengaluru)
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