President Donald Trump says that the US government is taking a 10 percent stake in Chip maker Intel. Trump shared news during news A press conference on FridayAlthough an official announcement is still upcoming, Roots ReportsNews of Intel’s plan to convert the pre -promised Chips Act funding into equity in the company Was reported earlier Earlier in August.
a meeting After the President, between Intel CEO Lip-Bo Tan and Trump Call your body to resign The source of the deal seems to be. Trump shared during the press conference, “He went for a desire to keep his job and gave us $ 10 billion to the United States. So we picked up 10 billion.”
Intel later announced more information on investment. The company said In a press release The government “will invest $ 8.9 billion in Intel Common Stock.” It adds that the equity stake will be funded as part of the Chips Act before $ 5.7 billion, and $ 3.2 billion will be honored as part of the safe enclave program. Intel returned to $ 2.2 billion in the first chips grant, making the government’s total expenses $ 11.1 billion on the chipmaker. The government paid $ 20.47 per share equal to full investment equal to 9.9 percent stake in the company.
It is important to note that the government investing in Intel is not the same as getting free money, this is an accurate opposite. Despite this Earlier comments US Commerce Secretary Howard Lutnik suggests that there will be a non-contribution, common stock comes with voting rights. Intel note that the investment will be inactive, which has no board representation, and the government agreed to vote with its board of directors “with limited exceptions, on matters requiring shareholder approval.”
Intel had to get Up to $ 10.86 billion To expand its chip construction business in the US as part of the Chips Act in Federal Funding. By agreeing to the deal, the tan is trying to ensure that the funding still passes, one of many harsh tricks to preserve Intel. Accepted CEO title After pat jellinger Sudden retirement in 2024Since taking over, he is already committed Intel’s workforce Up to 20 percent. Even with low cost and guaranteed investment, the company’s future is still uncertain: Intel is Alleged struggle To make your next-round panther lake chips on the scale.
Trump administration says this Will not search for equal equity deals Funding with other recipients of the Chips Act. This did not prevent them from making other unprecedented financial arrangements. Nvidia and AMD It was reportedly a deal with the US government that gives companies the ability to export products in exchange for 15 percent of their profits.
Update, August 22, 6:20 pm ET: The story was updated after publishing more information about the deal from Intel, and the headline was previously converted into a dollar figure instead of the “10 percent” amount mentioned. A section quoted by US Commerce Secretary Howard Lutynik said that the stake was a non-assignment, which was also influenced to reflect the final details of the deal.
