(Reuters) -Intel is in talks with other large investors to receive an equity infusion at a discounted price, CNBC reported on Wednesday, just days after the chipmaker got a $2 billion capital injection from SoftBank Group.
The report, which cited people familiar with the matter, did not name the potential investors. Intel, whose shares fell 7%, did not immediately respond to a Reuters request for comment.
As part of a plan to revive U.S. manufacturing, Commerce Secretary Howard Lutnick had said on Tuesday the government wants an equity stake in Intel in exchange for cash grants approved by the administration of former President Joe Biden.
Lutnick was also exploring government stakes in other chipmakers in exchange for CHIPS Act grants, which aims to spur factory-building in the U.S., Reuters later reported.
SoftBank's investment was at $23 per Intel share, a slight discount to Monday's closing price of $23.66.
This investment will come through issuance of common stock. Based on Intel's market capitalization at the close of trading on Monday, it would have represented a stake of just under 2%.
Intel has struggled to compete after years of management blunders left it with virtually no foothold in the booming artificial intelligence chip industry dominated by Nvidia.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Arun Koyyur and Shilpi Majumdar)
