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Chipmaker intel Said that the Trump administration’s move to take equity stake in the company can pose a risk for its business in a regulatory filing.
chairman Donald Trump Last week, it was announced that the federal government would take around 9.9% equity stake in a struggling chipmaker in exchange for already committed grants under the Chips Act.
Intel presented a regulatory filing with the Securities and Exchange Commission (SEC) on Monday, explaining the risk factors arising from the government’s equity stake in the company that it could hurt aspects of his business.
Intel reported that its non-American business can be affected by the US government by becoming an important stockholder, as the company may be subject to foreign subsidy laws such as additional rules or restrictions in other countries.
Trump says that Intel has agreed to give America a 10% stake in the company.
The Trump administration reached a deal with Intel’s CEO Lip-Bo Tan to get a 10% equity stake in the company. (Alex Vrolvski / Bloomberg Getty Image / Getty Image)
Outside the US, Intel had 76% of Intel’s revenue in the sale of Intel last year, while the revenue from China was 29% of the total revenue.
The company said that there is uncertainty on whether other government institutions will try to change the existing grants Equity investmentOr may not be ready to support future grants.
This “made the time and wealth of the transaction consumption, and the ability to fulfill the terms of funding made the ability to fulfill the terms of funding.”
Intel reported that there is no need to distribute funds at the end of the conclusion and “no assurance may be that the company will receive money on the timeline or on the specified amount.”
Intel receives $ 2 billion from softbank as White House Mul Stake
Intel CEO Lip-Bo Tan said the company does not require grants, but is ready to keep the US government as a shareholder. (Annabelle CHIH / Bloomberg Getty Embolce / Getty Image)
Additionally, the federal government’s equity stake “may limit the potential future transactions that may be beneficial for stockholders,” as the federal government will have voting powers that reduce the voting effects of other shareholders to appoint board members or consider other proposals.
The deal also dilutes the voting effect of existing stockholders and Intel said that they could “face significant additional weakening when triggering the terms of the warrant and using warrant.”
Intel’s new CEO worked around the chip giant
Intel received the grant under the Chips Act, which was signed in the law by the President Joe Biden. (Brendon Smiyalowski / AFP Getty Image / Getty Image)
President Trump on Monday defended the move on his true social platform that was a stake in Intel amid criticism from the federal government.
“I paid zero for Intel, it’s a price of about 11 billion dollars,” president Donald Trump Written on his true social stage. “All go to the United States. Why are people unhappy with it? I will do such deals for my country all day. I will also help companies that do such attractive deals with the United States. I love seeing the increase in the price of their stock, which makes USA rich, and rich. More jobs for America !!!
Trump first called for Intel’s CEO Lip-fue tan The alleged relations with companies in China were removed from their role in chipmaker, but supported those calls after a meeting with Tan in this summer.
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Tan said in a video posted on Monday Commercial department The company did not need government money.
“I don’t need a grant,” Tan said. “But I really look forward to the US government to be my shareholder.”
Reuters contributed to this report.
