Reference News Network, August 16 report - According to the Bloomberg News website on August 15, sources familiar with the matter revealed that the Trump administration is negotiating with Intel Corporation to invest in the struggling chip manufacturer. This is the latest indication of the White House's attempt to blur the boundaries between the state and industry.

The unnamed sources said that the deal would help advance Intel's plan to build a factory in Ohio. Intel had promised to turn it into the world's largest chip manufacturing base, but the project has faced multiple delays. Currently, the potential scale of the U.S. government's investment is still unclear.

Before these negotiations, President Trump had called for the dismissal of Intel's CEO, Patrick Pichette.

The sources said that the investment plan originated from a meeting between Trump and Pichette this week. One source said that although specific details are still being negotiated, the idea is for the U.S. government to fund the purchase of shares.

Another source warned that the plan could change, and the negotiations may ultimately fail.

Boosted by this news, Intel's stock surged as much as 8.9% on Thursday. By the close of trading, Intel's stock rose 7.4%, closing at $23.86 per share, giving the company a market value of about $104.4 billion. In after-hours trading, Intel's stock continued to rise by 4%.

A White House spokesperson, Kush Dasai, stated: "Unless the government officially announces it, any discussion about hypothetical transactions should be considered speculation."

Intel declined to comment on the matter. The company's representative said in a statement that Intel "is firmly committed to supporting President Trump's efforts to strengthen American technology and manufacturing leadership."

Intel stated: "We look forward to continuing our collaboration with the Trump administration to advance these shared priorities. However, we do not comment on related rumors or speculation."

If an agreement is reached, this transaction would boost Intel's financial situation during a period of cost-cutting and staff reductions, and also indicate that Pichette will continue to lead the company.

This is another direct intervention by the Trump administration in key industries. The U.S. government previously reached an agreement to obtain 15% of the revenue from some semiconductor sales. The U.S. government also obtained a so-called "golden share" in US Steel as part of the conditions for approving its sale to a Japanese competitor.

As a pioneer in the chip industry, Intel has been in trouble in recent years due to loss of market share and weakening technological advantages. Pichette's predecessor, Pat Gelsinger, once touted the expansion plan for the Ohio factory as a key part of the company's revival strategy.

However, Intel's financial difficulties have put the project in jeopardy. Earlier this year, the expansion plan was postponed to the 2030s. Intel also announced in July that it would further slow down the construction plan in Ohio.

Since taking over as CEO of Intel in March, Pichette has focused more on improving the company's financial condition. (Translated by Yang Xuele)

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