Commerce Secretary Howard Lutnick told CNBC the U.S. government wants a stake in Intel in exchange for CHIPS Act grant money promised under Biden.

Intel shares rose 7% Tuesday after SoftBank announced it will invest $2 billion in the chipmaker.

Japanese technology giant SoftBank Group plans to take a US$2 billion stake in computer chip maker Intel as it deepens its involvement in U.S. semiconductor manufacturing and other advanced technolog...

SoftBank chair and chief executive Masayoshi Son said the investment underscored SoftBank’s “commitment to advancing US technology and manufacturing leadership”.

“For national security, we have to stop that single point of failure,” he said.

U.S. Commerce Secretary Howard Lutnick said on Tuesday the government wanted an equity stake in Intel in exchange for cash grants approved during the administration of former President Joe Biden.

Silicon Valley pioneer Intel has been struggling from years of missteps in its manufacturing operation and missed opportunities around the artificial intelligence boom, culminating into one of the mo...