Washington: President Donald Trump on Monday celebrated the United States government's acquisition of a 10% stake in the chip manufacturing giant Intel, promising to pursue similar deals to bolster the nation's economy. The president shared his enthusiasm for the deal on Truth Social, underscoring his commitment to continue such transactions that he claims would enrich the country.
According to Anadolu Agency, President Trump stated on Truth Social, "I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA. Why are 'stupid' people unhappy with that?" He expressed his intention to make such deals consistently for the benefit of the United States and to support companies engaging in lucrative agreements with the government. Trump highlighted his satisfaction with the increase in stock prices, which he believes contributes to the nation's wealth and job creation.
The White House confirmed on Friday the acquisition of a 10% stake in Intel. The transaction involves approximately $8.9 billion, partially funded through grant financing related to the CHIPS Act, with the rest sourced from various government expenditures aimed at enhancing the production of secure chips.
Earlier in the day, White House economic advisor Kevin Hassett explained to CNBC that the Intel acquisition is part of a larger plan to establish a sovereign wealth fund, potentially encompassing a variety of companies. Hassett described the situation as unique due to the significant CHIPS Act investments and reiterated the president's long-standing goal of developing a sovereign wealth fund. He suggested that more transactions could be expected, possibly extending beyond the chip industry.
In February, President Trump signed an order to create a sovereign wealth fund, a financial tool typically used by resource-rich smaller nations to support strategic transactions. Hassett noted that although such government involvement in major firms is rare, it is not without precedent, referencing past US holdings in Freddie Mac and Fannie Mae during the financial crisis.
Hassett further explained that this move aligns with the administration's broader strategy to stimulate domestic manufacturing, which includes imposing tariffs to encourage companies to relocate production to the United States.