The Trump administration is in talks with Intel (INTC.O), opens new tab to have the U.S. government potentially take a stake in the struggling chipmaker, Bloomberg News reported on Thursday, citing people familiar with the plan.
https://www.reuters.com/world/china/us-weighs-taking-stake-intel-bloomberg-news-reports-2025-08-14/
Is it ever really not a good time for TACOs?
https://slashdot.org/story/25/08/20/2051231/trump-confirms-us-is-seeking-10-stake-in-intel
A 10% stake in a failing company, without a true government effort to keep it solvent, is a losing bet. Make it all in or not at all, like the Powell Doctrine (https://en.wikipedia.org/wiki/Powell_Doctrine), not some pu ssy a ss sh tr ump sh it.
When they spin out IFS they could rename it The American Chip Organization, or TACO for short.
Trumptel sounds better than Shitel 😂
Intel should expect that any deal will involve interacting directly with Donald Trump, rather than the federal bureaucracy. Control over manufacturing in Ohio may be one area of interest for America’s president
https://econ.st/3V4K958
Because, of course, he knows more about microchip design and manufacturing than anyone and, certainly, more than anyone left at Intel.
All you TSMC/Intel shippers may get your wish. When TARP was used, Chrysler was a big recipient and ultimately they were sold to Fix-It-Again-Tony.
All hope is not lost.
So American tax-payers bailing out another corporation yet again. So much for meritocracy.
If the government funded and remained a large equity partner for the Ohio site, that would ensure leading edge supply for all military and other needs.
The government already relies on Intel for this, and will need more supply as AI becomes embedded in all manner of government functions.
Does anyone really want TSMC making the AI chips for Skynet?
Oh, you know that is getting built.
@dk Tweet Angry Continue Orange
Won’t change the fact that Intel is failing. We’ll get the Yugo of chips out of this deal.
This was all covered in The Art Of The Taco.
Step #1: Steal Underwear.
Step #2: Unknown, but may involve a mean tweet.
Step #3: Taco
The govt realizes that the investment needed to maintain leading edge is beyond most companies unless they have a large monopoly product.
Even TSMC required massive gov't support over a period of many years, and that govt now controls where TSMC is allowed to build fabs, so that is the relationship that is part of that deal.
x86 sure isn't going to keep IFS going, and the bridge to external customers doesn't quite get to the other side, so this is exactly the kind of case for govt intervention.
PG started the Ohio site knowing that Intel could not fil it or pay for it. It has been and will continue to be the site which exists only if the gov't is a major investor.
Once built, then it won't take much to get all the tech companies to sign on, and that should be enough to fill it. That is how the bridge gets completed.
You can renew your Netflix subscriptions for those long nights ahead in the bullpens lads.
@a2 I'm gonna wait for Stuart's analysis
the government can't run itself and has a $37 trillion debt... yeah this is the fix Intel needs...
I really don't understand why the stock is up. There are no free lunches, especially with Trump. If the US Gov't pours money into Intel, it will clearly be in exchange for Intel diluting the stock and giving a large portion of stocks to the government. This gives the government formal voting power, and also this way, if Intel keeps messing up, the government can turn around and sell the stocks, to get at least a portion of its investment back. Now why on Earth would the stock price rise if it's about to get diluted, beats me...
Make Ohio a Defense chip and Government AI computer chip site. Only US citizens need apply.
The sad part is that if they don't stop the bleeding and the US doesn't want to try to prevent bankruptcy other countries (like the UAE) would love to buy up 51% of the stock and play trading cards with bits and pieces of other companies, make a new one and make huge money off of a new IPO.
Cannot be named TSMC Trump Semiconductor Manufacturing Company but maybe DTSMC Donald Trump Manufacturing Semiconductor Company LOL. Put a statue at the Ohio plant.
For those thinking this fixes the stock, give it some thought.
The gov't appears to just be interested in getting the Ohio fab up and running, so this doesn't really change the financials for the company over any reasonable period of time, because they had largely cut off investment in the Ohio site.
It is a good thing in the long term, but IFS lost something like $15B last year and will still lose money this year too.
That is likely to keep the stock in the $20s, until the gov't or Intel are able to get some meaningful external customers for that Ohio site, and other sites.
So it is a good thing but no magical fix. Could even increase costs in the short term, if Intel ramps up the effort to complete the site.
Today will be remembered for all time as TACO Thursday.
It will be a classic stock pump and dump … watch the execs sell …
It’s bad and wrong only when others do it.
In this case, it’s good and right and will result in the creation of more jobs, not the layoff of more employees.
I’ll be laughing when all the conservative trump lovers explain how government seizing the means of production is actually good thing now.