Fox Business's Larry Kudlow expressed concern on Friday over the Trump administration's move to take a 10 percent stake in mega chipmaker Intel.
“I am very, very uncomfortable with that idea. I’m very uncomfortable with that one, but that’s a conversation for another meal on another day," Kudlow told economist Stephen Moore, in an interview highlighted by Mediate.
Moore, earlier in the appearance, also criticized the administration's decision, calling it "terrible."
“I hate corporate welfare. That’s privatization in reverse. We want the government to divest of assets, not buy assets. So terrible, one of the bad ideas that’s come out of this White House,” Moore told Kudlow, who served under President Trump as the director of the National Economic Council during his first term.
Trump on Friday announced that the U.S. government now owns 10 percent of Intel shares.
“The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN!” he wrote on social media.
The Hill reached out to the White House for comment.
Commerce Secretary Howard Lutnick said the purchase would boost the struggling American chipmaker. The government will use funds allocated under former President Biden’s CHIPS and Science Act.
“So we’ll deliver the money which was already committed under the Biden administration,” Lutnick said. “We’ll get equity in return for it, get a good return for the American taxpayer instead of just giving grants away.”
After the deal, the CEO of Intel, Lip-Bu Tan lauded the agreement on social media, stating it will "boost American semiconductor leadership." X
“I’m excited about the work ahead to ensure the most advanced silicon technology and computing products of the future are designed and built right here in the USA. Thank you @potus and @howardlutnick for the confidence you have in Intel to deliver for our country,” he continued.
The agreement marks a sharp reversal in Trump's relationship with the chief executive, whom he asked to resign earlier this month. The president on Friday shared how the government made the deal after visiting with Tan.
“And he came in, he saw me, we talked for a while. I liked him a lot. I thought he was very good," he told reporters. "I thought he was somewhat a victim, but, you know, nobody’s a total victim, I guess.”
“And I said, ‘You know what? I think the United States should be given 10 percent of Intel.’ And he said, ‘I would consider that,’” the president continued. “Intel has been left behind, as you know, compared to [Nvidia CEO] Jensen [Huang] and some of our friends.”
Source: The Hill - News
