CNBC’s Kristina Partsinevelos joins 'The Exchange' to discuss the Trump administration eyeing a stake in Intel and the headwinds the company is having with its fabs.

Washington

The Trump administration is reportedly considering taking an equity stake in Intel, following a recent meeting between the president and the company's CEO. This potential move comes after the administration previously called for the CEO's resignation and amid ongoing challenges for Intel in competing with leading chip manufacturers like TSMC and Samsung.

While federal investment could provide short-term market support, analysts note that it may not address Intel's core manufacturing issues or improve its ability to produce advanced chips in the near term. There are also concerns about potential shareholder dilution and the long-term effectiveness of such government intervention. Rumors of other strategic changes, including the possibility of Intel shifting to a fabless model or outside investment from companies like TSMC, have been denied or remain unconfirmed.

Trump admin reportedly eyes Intel stake

Intel has had a huge week. The president meeting with the Intel CEO at the White House earlier this week. The president had, of course, called for his resignation, but now the government is reportedly looking to take a stake in the chip maker. Christina Partzanabolos has more in today's Tech Check. What are you learning, Christina? Well, Contessa, talk of a U.S. government taking an equity stake in Intel sounds dramatic, no doubt. But for investors, it doesn't solve the company's core issue, which is catching up in advanced chip manufacturing. In July, Lipu Tan told employees Intel's advanced manufacturing would only move forward with, quote, confirmed customer commitments, end quote, no more blank checks. It was a direct signal to Washington. Without outside orders, Intel wouldn't build. That message landed after Tan also met with President Trump just this past Monday and after Trump called for Tan to resign just last week. So clearly a lot can change in a week. Intel, though, has already received billions of dollars in Chipsack funding under Biden. Now Trump is considering more support in the form of an equity stake, potentially even funding that stake through the existing Chipsack money. But Intel, unfortunately, still likes TSMC to a degree Samsung in producing the most cutting-edge chips that power AI. Wedbush highlights key concerns. Federal investment won't improve Intel's fab capabilities in the near term. What strings are attached? Will shareholders face dilution? Federal cash doesn't change the fact that Intel needs both the technology and the customers to fill those fabs profitably. For the market, this may provide short-term support on political headlines, as you can see by the stock today, just up, what, over 6.5%, and maybe a win for Trump in a swing state, Ohio, where Intel is building those plants and there have been some delays. But without a fix to its manufacturing gap, the long-term upside remains limited. Washington's money may boost sentiment, but it won't fix the fundamental problem at Intel. Are there solutions on the horizon? Aside from capital influx, the solution for Liputin was possibly to close down the foundry. That was something that he alluded to, or maybe we're reading between the lines, but he alluded to working with other foundries if they don't have customers. So he was willing to change things around. And then some people took it as, whoa, could Intel become a fabless manufacturing, which means that they wouldn't actually manufacture such chips for other customers. And that's a big move. So there's a lot of avenues. There was rumors about TSMC taking a 51% stake in the foundry business. TSMC denied it. Again, just rumors. But something needs to change because this foundry business is really having a tough go. It sounds like it boils down to a question of, would fabless be fabulous? You sound like Brian Sullivan with that pun. I know, I was just channeling it. It was like a dad joke and I'm along. Right, okay. Christina, thank you for that.

U.S. President Donald Trump and Russia's Vladimir Putin have arrived in Alaska ahead of their high stakes talks on Ukraine. The expected one-on-one meeting between Trump and Putin has expanded to include U.S. officials Steve Witkoff and Marco Rubio and other Russian officials.

Ukraine Invasion

Trump, Putin arrive in Alaska for historic summit

Israel's far-right finance minister approved the construction of a controversial new settlement in the West Bank, saying it "finally buries the idea of a Palestinian state." But it's unclear if this move will actually go through. Rights groups swiftly condemned the plan.

Jerusalem

Middle East Conflict

Israeli finance minister approves new West Bank settlement

U.S. President Donald Trump indicated in an interview that he hoped to push Russian President Vladimir Putin toward a second meeting but acknowledged there was a chance Friday’s meeting would not succeed.

Trump shifts tone, confident on deal to end Ukraine war

Israeli Finance Minister Bezalei Smotrich said a plan to add more than 3,000 homes to a controversial settlement in the West Bank would bury ‘the idea of a Palestinian state.’

Israel furthers plan for settlement that divides the West Bank

Ukrainian President Volodymyr Zelenskyy met with British Prime Minister Keir Starmer in London. This comes one day before U.S. President Donald Trump is set to meet with Russian President Vladimir Putin in Alaska to discuss a possible ceasefire in Ukraine.

London

Zelenskyy, Starmer meet ahead of Trump, Putin summit in Alaska

Speaking in the Oval Office on Thursday, President Trump sounded optimistic about his upcoming summit with Russian President Vladimir Putin in Alaska.

Trump says he thinks Putin and Zelenskyy will make peace

Florida Gov. Ron DeSantis has announced plans to build another immigrant detention center, dubbing it the "Deportation Depot." The facility will be in North Florida.

Jacksonville

DeSantis announces plan to build another immigrant detention center

President Trump had a virtual call Wednesday with Ukrainian President Volodymyr Zelenskyy ahead of his meeting with Russian President Vladimir Putin on Friday in Alaska. After the call, Zelenskyy said he told Mr. Trump that "Putin is bluffing."

Ukraine's Zelenskyy warns President Trump ahead of meeting with Putin

U.S. President Donald Trump said he would ask the Republican-controlled Congress to extend federal control of Washington's city police force beyond 30 days, escalating his campaign to exert presidential power over the nation's capital.

Trump wants to extend federal control over Washington police

With just hours left to reach a deal on plastics, negotiators in Geneva were scrambling to resolve a deadlock caused by “red lines” of member countries. Nations are crafting the first global, legally binding treaty on plastics pollution at the United Nations office in Switzerland.

Geneva

Global plastics treaty talks in Geneva stall as deadline looms

At least 123 people have been killed in 24 hours, according to Gaza's Health Ministry. Israeli Prime Minister Benjamin Netanyahu says people will be given the opportunity to leave Gaza before a planned ground offensive, but no one is being pushed out.

Israeli strikes pound Gaza ahead of planned ground offensive

America's NATO allies stood firmly with Ukrainian President Volodymyr Zelenskyy ahead of the face-to-face meeting between President Trump and Russian President Vladimir Putin in Alaska. The European leaders showed a united front that there should be no peace deal without Ukraine's involvement.

Kyiv

NATO allies stand with Ukraine ahead of Trump-Putin summit

U.S. Immigration and Customs Enforcement must improve conditions for detainees at New York's 26 Federal Plaza, a judge ruled Tuesday.

New York

Judge rules ICE must improve conditions for detainees at NY facility

National Guard troops arrived in Washington, D.C., following President Donald Trump's deployment and federalization of local police to crack down on crime in the nation's capital.

National Guard troops arrive in Washington, D.C.

U.S. President Donald Trump said that he had a "very good call" with Ukrainian President Volodymyr Zelenskyy, days before his scheduled Alaska meeting with Russian President Vladimir Putin.

Trump had 'very good call' with Zelenskyy ahead of Putin meeting

Israel's military chief of staff, Lt. Gen. Eyal Zamir, has approved the framework of a plan for a new offensive in Gaza. CBS News Middle East reporter Courtney Kealy has more details.

Israeli military chief approves 'framework' for new Gaza offensive

President Donald Trump said Wednesday there will be “very severe consequences” if Russian President Vladimir Putin doesn’t agree to stop the Ukraine war after Friday’s summit.

Trump warns of 'severe consequences' if Russia doesn't stop war

A Wisconsin woman on Tuesday was found guilty in the United Kingdom of trying to kill a man at point-blank range in 2019. Aimee Betro, 45, was part of a plot with two other co-conspirators to murder Sikander Ali, prosecutors said.

Birmingham

American woman found guilty of UK murder-for-hire plot

Record-high temperatures across Europe are fanning wildfires across the continent. Experts say a warming climate and an increase in flammable vegetation from rural depopulation are major factors.

Madrid

Historic heat fuels fires across Europe

Hungary's PM Viktor Orbán said the EU attempts to set conditions for a meeting to which leaders of the EU were not invited. He also called for an EU-Russia summit.

Brussels

EU leaders rally behind Ukraine ahead of Trump-Putin talks

President Trump said Monday he expects that Russia and Ukraine will "land swap" certain territories as part of an eventual ceasefire deal. Mr. Trump is set to meet with Russian President Vladimir Putin in Alaska on Friday.

Trump claims 'land swapping' between Russia, Ukraine will happen

Taylor Swift confirmed her 12th studio album, "The Life of a Showgirl," in a teaser for her upcoming appearance on her boyfriend Travis Kelce's podcast. Swift did not disclose the release date of the album.

Taylor Swift announces new album, 'The Life of a Showgirl'

U.S. President Donald Trump said that his planned meeting with Russian President Vladimir Putin in Alaska on Friday will be to "feel out" the leader as pressure mounts for Russia and Ukraine to make a peace deal.

Trump to meet with Putin in Alaska on Friday

A meeting between US President Donald Trump and Russian President Vladimir Putin is set to take place in Alaska, with European leaders notably excluded from the talks. Until Europe can defend itself, it's not likely to be invited to a great power dialogue, experts have told Euronews.

Alaska

Europe frozen out as U.S. and Russia prepare for Alaska talks

U.S. President Donald Trump said on Monday that Kyiv and Moscow will both have to cede land to end the war in Ukraine and talks with Russian President Vladimir Putin this week will instantly show whether the Kremlin leader is willing to make a deal.

Breakdown