{"id":52225,"date":"2025-08-22T17:38:32","date_gmt":"2025-08-22T21:38:32","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/trump-announces-u-s-takes-10-stake-in-intel-amid-starbucks-cost-cutting-measures\/52225\/"},"modified":"2025-08-22T17:38:32","modified_gmt":"2025-08-22T21:38:32","slug":"trump-announces-u-s-takes-10-stake-in-intel-amid-starbucks-cost-cutting-measures","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-announces-u-s-takes-10-stake-in-intel-amid-starbucks-cost-cutting-measures\/52225\/","title":{"rendered":"Trump Announces U.S. Takes 10% Stake in Intel Amid Starbucks Cost-Cutting Measures"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>The <strong>U.S. government<\/strong> has acquired a <strong>10% equity stake<\/strong> in chipmaker <strong>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>)<\/strong>, a deal valued at approximately <strong>$10 billion to $11 billion<\/strong>, following negotiations led by former President <strong>Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong> with <strong>Intel CEO Lip-Bu Tan<\/strong>.<\/li>\n<li><strong>Starbucks (<a href=\"\/stock\/SBUX\">SBUX<\/a>)<\/strong> is actively implementing a comprehensive strategy to <strong>reduce expenses<\/strong> and enhance <strong>operational efficiency<\/strong> across its U.S. operations, which includes streamlining its menu and potentially adjusting its manufacturing footprint.<\/li>\n<li>The <strong>Intel<\/strong> agreement marks an extraordinary intervention by the White House in corporate America, converting federal <strong>CHIPS Act grants<\/strong> into an ownership stake, aiming to bolster the struggling chipmaker and reinforce domestic semiconductor production.<\/li>\n<li><strong>Starbucks&#39;<\/strong> cost-reduction initiatives are a direct response to persistent challenges, including <em>elevated coffee expenses<\/em>, <em>declining U.S. sales<\/em>, and the need to improve overall profitability and customer experience.<\/li>\n<\/ul>\n<p>President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> announced today that the <strong>U.S. government<\/strong> has secured a <strong>10% equity stake<\/strong> in semiconductor giant <strong>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>)<\/strong>, a deal he valued at roughly <strong>$10 billion to $11 billion<\/strong>. This significant government intervention follows negotiations between Trump and <strong>Intel CEO Lip-Bu Tan<\/strong>, with the agreement expected to be formally announced later today. The stake is reportedly a conversion of federal grants pledged to <strong>Intel<\/strong> under the <strong>CHIPS Act<\/strong>, aiming to support the company and boost U.S. chip production.<\/p>\n<p>Commerce Secretary Howard Lutnick confirmed the deal on social media, stating that &quot;The United States of America now owns 10% of Intel,&quot; and praised <strong>Tan<\/strong> for striking a deal beneficial to both the company and the American people. This move comes after earlier reports of discussions between the <strong>Trump administration<\/strong> and <strong>Intel<\/strong> regarding a potential equity stake, which analysts believe would provide both financial interest and political incentive for <strong>Intel&#39;s<\/strong> success. The government&#39;s involvement could potentially give <strong>Intel<\/strong> access to new clients, though some skeptics question whether capital alone can resolve the company&#39;s core challenge of attracting customers to its foundry services.<\/p>\n<p>Meanwhile, coffee giant <strong>Starbucks (<a href=\"\/stock\/SBUX\">SBUX<\/a>)<\/strong> is taking decisive action to curb expenses and enhance its operational efficiency across its U.S. operations. The company is reportedly slowing operations at its U.S. coffee plants as part of a broader strategy to reduce overall costs. This initiative is a critical component of CEO Brian Niccol&#39;s turnaround efforts for the struggling U.S. business.<\/p>\n<p><strong>Starbucks<\/strong> has been grappling with <em>elevated coffee expenses<\/em>, which are expected to remain high until early <strong>2026<\/strong>, alongside <em>declining sales<\/em> in its crucial U.S. market. The company&#39;s strategy includes streamlining its menu by eliminating approximately <strong>30% of beverage and food SKUs<\/strong> by the end of fiscal year 2025, and making significant investments in labor and digital upgrades to improve service efficiency and customer experience. These measures are designed to address operational inefficiencies, reduce wait times, and ultimately boost profitability amidst a challenging market environment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The U.S. government has acquired a 10% equity stake in chipmaker Intel (INTC), a deal valued at approximately [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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