Intel’s actions increased in Thursday’s latest negotiation, after a Bloomberg report indicated that the Trump administration is considering acquiring a participation in the technological giant, only a few days after the president met with the executive director Lip-Bu Tan, after having previously requested his dismissal.
Key data
Intel’s shares rose 7.4% on Thursday, reaching its highest point since March and erasing the fall in the actions that occurred last month after its latest profit report did not meet the expectations of Wall Street.
It was reported that the Trump administration is in conversations with Intel about the purchase of company shares as a way of strengthening its presence in manufacturing in the US, according to Bloomberg, which pointed out that the agreement would support one of the future manufacturing plants of Intel in Ohio.
The size of potential participation is unknown, according to Bloomberg.
After several delays, Intel plans to build two facilities in OHIO for a value of 28 billion dollars by 2030.
White House spokesman Kush Desai told Forbes by email: “Discussions on hypothetical agreements should be considered as speculation, unless they are officially announced by the administration.”
Forbes has contacted Intel to obtain comments.
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How was the performance of Intel’s actions this year?
Well, mostly, slowing down a fall that lasted years because he could not keep up with his competitors in the AI career. Intel’s shares have risen 19% since the beginning of the year after Thursday’s increase, although the company has not been exempt from ups and downs. The shares reached its lowest point of the year in April and fell to the brand of 18.13 dollars around the same time that a Reuters report discovered that it had extensive commercial ties with China. The actions rose in the following months before falling again at the end of July. However, the increase in Intel shares during the last week has more than compensated the losses of July, taking the action to $ 23.86 per share.
Why are Intel facilities so important in Ohio?
Factories will focus on the development of national semiconductors, something that Biden and Trump administrations have promoted, since countries such as Taiwan, China and South Korea maintain an advantage in the production of chips. The semiconductors are small crucial chips for computers, smartphones, medical devices, cars and other technologies. Intel has invested 28 billion dollars in the facilities that will be located on a field of almost 1,000 acres on the outskirts of Columbus, Ohio. Delays have postponed the opening date from 2025 to 2030, since Intel has dealt with financial difficulties.
Key context
The connection of such with more than 600 Chinese companies put it in trouble with the Trump administration this month, with Senator Tom Cotton, R-Ark., Questioning the “potential impact on the national security of the USA. UU.” and Trump asking for the resignation of the CEO. Intel, who appointed as his new executive director in March, said in a letter that his board of directors and so were committed to the US national and economic security interests. UU. And that they were “making significant investments aligned with” the Trump agenda. Trump met with such a week in what he described as a “very interesting” meeting. The president praised the “success and ascent” of Tan, adding that his cabinet would soon discuss commercial suggestions with the CEO in the next week.
This article was originally published by Forbes US
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