US EditionIntel Pockets $5.7B From the US and Explains Why It Did the Deal
The U.S. government took a 10% stake in Intel to support domestic semiconductor manufacturing amid ongoing finalization of deal terms by federal agencies.
- On Wednesday, Intel CFO David Zinsner said Intel received $5.7 billion from the U.S. government, following the White House's decision last Friday to take a 10% stake, with details still being finalised by the Department of Commerce.
- The deal repurposed CHIPS Act grants by converting $8.9 billion into equity, linked to the CHIPS and Science Act and a $3 billion Department of Defense Secure Enclave award not yet implemented.
- In a Monday SEC filing, Intel warned that the deal could prompt adverse reactions and flagged risks to international revenue, which accounts for over 70% of its business, complicating sales to customers in Asia and Europe.
- After July 25 quarterly results, Intel shareholders and investors expressed unease about dilution and the foundry business, while the deal contains a five-year warrant allowing additional 5% at $20 a share.
- Analysts note the move echoes the 2008 auto bailouts and is among the most direct U.S. government interventions, while industry analysts warn it may burden tech firms with oversight and commentators caution it risks trade retaliation from China and other international markets.
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Intel, MAHA, and Trump's Similarities with Richard Nixon
Assistant editor Joshua Mawhorter joins Tho Bishop and Connor O’Keeffe on the Power and Market Podcast. The three discuss Trump’s acquisition of a stake in Intel, consider how monetary policy contributes to a lot of the national health problems MAHA is focused on, and react to Jerome Powell’s Jackson Hole speech.
The U.S. government is joining the Intel chip company, receiving billions of dollars, and Donald Trump rejoices at another deal.
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Total News Sources33
Leaning Left0Leaning Right5Center11Last UpdatedBias Distribution69% Center
Bias Distribution
- 69% of the sources are Center
69% Center
C 69%
R 31%
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