Intel shares have jumped after Japanese technology investment giant Softbank stated it is acquireing a $2bn (£1.5bn) stake in the US computer chip buildr.
The announcement came just hours after new reports that the Trump administration is in talks to take a stake of around 10% in Intel by converting government grants into shares.
The potential deal, which was first reported last week, aims to support Intel build a flagship manufacturing hub in Ohio. At the time, a White Houtilize spokesman notified the BBC that the reports “should be regarded as speculation” unless officially announced.
The BBC has contacted the White Houtilize and Intel for comment.
Under the deal announced on Monday, Softbank will pay $23 per share in Intel.
“The investment comes as both Intel and SoftBank deepen their commitment to investing in advanced technology and semiconductor innovation in the United States,” the two companies stated in a joint statement.
Last week, US President Donald Trump and members of his cabinet met Intel chief executive Lip-Bu Tan.
The meeting came just days after Trump called for Mr Tan to resign, accapplying him of being “highly conflicted” due to his earlier ties to China.
The developments came as the US chip industest is under intense scrutiny by the White Houtilize.
Some analysts have described Intel’s potential deal with the US government as a lifeline for the firm.
On Thursday, the company declined to comment on the reported discussions and stated it was “deeply committed to supporting President Trump’s efforts” to strengthen manufacturing and technology in the US.
Such an agreement would mark a “major escalation” in what seems to be an attempt by the Trump administration to reshape the US government’s role in the private sector, stated political scientist Sarah Bauerle Danzman from Indiana University.
But the potential shift sets a “concerning precedent” as it raises questions about whether companies may be pushed to follow political agconcludeas, she stated.
Last week, Nvidia and AMD agreed to pay the US government 15% of their Chinese revenues as part of an unprecedented deal to secure export licences to China.
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