Technology

The Big Story

Trump administration weighs Intel stake

The Trump administration is considering taking a stake in Intel as a means of boosting the struggling U.S. chipmaker, Commerce Secretary Howard Lutnick said Tuesday.

Lutnick indicated the money for the stake would come from previously allocated Biden-era funding. Media reports have suggested the government is considering a 10 percent stake using CHIPS and Science Act grants.

"The president figures out that we should get, America should get the benefit of the bargain," he told CNBC's "Squawk Box."

"I mean, that is exactly Donald Trump's perspective, which is, why are we giving a company worth $100 billion this kind of money?" he continued. "What is in it for the American taxpayer? And the answer Donald Trump has is we should get an equity state for our money."

"So we'll deliver the money which was already committed under the Biden administration," Lutnick added. "We'll get equity in return for it, get a good return for the American taxpayer instead of just giving grants away."

The Commerce secretary's comments come just less than two weeks after President Trump called on Intel CEO Lip-Bu Tan to resign.

The president accused Tan of being "highly conflicted" following Sen. Tom Cotton's (R-Ark.) letter to the company, voicing concerns about the CEO's investments in Chinese companies and his previous role at Cadence Design Systems.

The software firm recently pleaded guilty to violating export controls by selling chip design technology to a Chinese military university during Tan's tenure.

However, Trump changed his tone after meeting with Tan last week, and reports began emerging that the administration was considering taking a stake in the company.

"The meeting was a very interesting one. His success and rise is an amazing story," Trump said in a post on Truth Social. "Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week."

Check out the full report at TheHill.com.

Welcome to The Hill's Technology newsletter, I'm Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.

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Essential Reads

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The Refresh

News we've flagged from the intersection of tech and other topics:

Nvidia working on new AI chip for China that outperforms the H20 (Reuters)
United Kingdom drops demand for backdoor into Apple encryption (The Verge)

Crypto Corner

Scott thanks crypto industry for ousting Brown

Senate Banking Chair Tim Scott (R-S.C.) offered his gratitude to the crypto industry Tuesday for helping to oust former Sen. Sherrod Brown (D-Ohio).

"Thank you to all of y'all for getting rid of Sherrod Brown," Scott said at the Wyoming Blockchain Symposium. "He's running again, by the way."

"But literally, the industry put [GOP Sen.] Bernie Moreno in the Senate, and he's on the banking committee," he continued. "So really having the opportunity to have a team that's focusing on the industry because we have a passion for people who want to make a profit and help people."

Scott, who previously served as head of the Senate Banking Committee, was ousted last year in a race that saw the crypto industry pour in large sums of money.

One crypto-affiliated super PAC spent more than $40 million to defeat the Democratic incumbent, who was seen a barrier to passing digital asset legislation.

It was ultimately the most expensive Senate contest in the country, with both parties spending more than $500 million.

Brown is back in the fray again, launching a comeback bid for Sen. John Husted's (R-Ohio) seat Monday. He raised more than $3.6 million in the first 24 hours of his campaign.

Plus: Former White House crypto adviser Bo Hines has joined Tether, the world's largest stablecoin issuer, as a strategic adviser for digital assets and U.S strategy after departing the administration earlier this month.

Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.

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Op-eds in The Hill

Opinion related to tech submitted to The Hill: