The extraordinary development follows a meeting between CEO Lip-Bu Tan and Trump after he called for Tan’s removal.The United States government will take a 10 percent stake in Intel under an agreement with the struggling chipmaker, President Donald Trump has said, marking the latest extraordinary intervention in corporate affairs.Trump made the announcement on Friday. Intel, whose shares rose more than 6 percent, declined to comment.The development follows a meeting between CEO Lip-Bu Tan and Trump earlier this month that was sparked by Trump’s demand for the Intel chief’s resignation over his ties to Chinese firms.“He walked in wanting to keep his job and he ended up giving us $10bn for the United States,” Trump said on Friday.The move marks a clear change of direction and also follows a $2bn capital injection from SoftBank Group in what was a major vote of confidence for the troubled US chipmaker in the middle of a turnaround.Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product roadmap and challenges in attracting customers to its new factories.Trump, who met Tan on August 11, has taken an unprecedented approach to national security.The US president has pushed for multibillion-dollar government tie-ups in semiconductors and rare earths, such as a pay-for-play deal with Nvidia and an arrangement with rare-earth producer MP Materials to secure critical minerals.Tan, who took the t …
