Intel (NASDAQ:INTC) is in discussions with other large investors to get an equity infusion at a discounted price, CNBC reported, citing people with knowledge of the matter.
Earlier this week, Intel (NASDAQ:INTC) secured a $2B investment from Japan’s SoftBank (OTCPK:SFTBY) (OTCPK:SFTBF). Meanwhile, separately, U.S. Treasury Secretary Scott Bessent said that the Trump Administration’s plan to acquire a stake in Intel to help it develop a functioning foundry domestically is crucial for national security.
Commerce Secretary Howard Lutnick told the media outlet on Tuesday that the U.S. government must receive an equity stake in Intel in exchange for the CHIPS Act funds.
“They need money to build whatever it is that the customers may actually, ultimately want,” said CNBC’s David Faber on the media outlet’s show Squawk on the Street, the report added. “And having the CHIPS Act money, which is free, so to speak, no strings attached, become equity is not helpful to them because it’s dilutive.”
Intel did not immediately respond to a request for comment from Seeking Alpha.
On Wednesday, Intel’s stock tumbled about 7% after it closed about 7% higher on Tuesday. The embattled chipmaker is attempting a turnaround after seeing declining sales and shrinking market share.
The company also overhauled its leadership, bringing in Lip-Bu Tan to be its CEO in March. However, the company’s hurdles are far from over.
Earlier this month, Trump called for Tan’s resignation, noting that “the CEO of INTEL is highly CONFLICTED and must resign, immediately.” Following this, Tan met Trump and multiple cabinet members last week in the White House, where Trump called Tan’s success story “amazing.”