President Donald Trump said he regrets not negotiating for a larger ownership portion of Intel after the U.S. government converted federal awards into equity in the chipmaker last year.
In an interview published by Fortune on Monday, Trump recounted asking Intel CEO Lip-Bu Tan for "10% ownership for free." He said that when Tan agreed, he later concluded he "should have asked for more."
Government officials disclosed in August that the United States held a 9.9% stake in Intel. That position resulted from converting $5.7 billion in CHIPS Act grants into equity alongside an additional $3.2 billion from separate government awards.
Intel's shares have risen markedly since the stake was taken, increasing by more than 300% during that period, according to the information in the interview. The company also recorded a notable performance in April, described as its best month in the chipmaker's 55 years on the Nasdaq, when the stock more than doubled.
Trump told Fortune he believed Intel would have been "the biggest company in the world right now" if he had implemented tariffs to shield the company when firms began importing chips from China. He said, in his view, Intel would have captured that import business and added that "there would be no Taiwan," a comment referencing Taiwan Semiconductor Manufacturing Co., which the interview notes has a market capitalization of $1.84 trillion compared with Intel's $547 billion.
The interview also touched on recent commercial developments involving Intel. Earlier this month, reports stated that Apple and Intel reached a preliminary agreement for Intel to manufacture some chips for Apple devices. Separately, the interview referenced comments by Tesla CEO Elon Musk, who in April said he expects to rely on Intel's chips for the $119 billion Terafab project.
Market tickers cited with the coverage included INTC at -0.71% and TSM at -2.03% in the reporting snapshot. The article presents the president's remarks and the factual timeline surrounding the government's conversion of grants to equity without making claims beyond those statements and disclosed financial figures.
Summary of the situation
- The U.S. government converted $5.7 billion from the CHIPS Act and $3.2 billion from other awards into a 9.9% equity stake in Intel.
- President Trump said he requested "10% ownership for free" from Intel's CEO and later said he "should have asked for more."
- Intel's stock has appreciated by more than 300% since the government took the stake, and April was noted as the company's strongest month on the Nasdaq in 55 years.
Key points
- Semiconductors and broader technology markets are affected by the conversion of federal grants into corporate equity and subsequent share-price movements.
- Government involvement via grants-to-equity conversions can reshape ownership structures in strategically important firms.
- Recent commercial ties and reported preliminary agreements, such as between Apple and Intel and Tesla's stated plans to use Intel chips, are part of the evolving industry landscape.
Risks and uncertainties
- Future policy actions or tariff strategies referenced by political figures are hypothetical and their potential effects on market share or global supply chains remain uncertain - this impacts the semiconductor and technology sectors.
- Preliminary commercial agreements, such as the reported Apple-Intel arrangement, are not final and thus carry execution risk for the companies and supply chains involved.
- Concentration of ownership resulting from government equity positions could have governance or market-perception implications, depending on future disclosures and developments.