The US government is in talks to take a part-stake in Intel, according to a Bloomberg report. The talks between the two sides came after Intel CEO Lip Bu Tan met with President Donald Trump earlier this week. Trump, who had called for Tan to resign the previous week, changed his mind after the meeting.
The amount of shares to be purchased and their value are still being finalized. The stake in Intel is seen as another step by the US to bring high-tech manufacturing power back to the country while also improving security for the future.
Intel was the largest recipient of funds under the CHIPS act last year, which aims to boost domestic chip production. Several fabrication plants are under construction and if the report turns out to be true, it would be good news for Intel, which has struggled financially for the past two years. Intel shares jumped nearly 10% after news of the share purchase was reported.