The US government acquires a 9.9% stake in Intel.
The injection into the chip company is $8.9 billion, about €7.6 billion, through resources provided by subsidies.
BarcelonaNo sooner said than done. The US government has agreed to buy a 10% stake in Intel. This initiative, a level not seen in the private sector since the 2008 crisis, will inject $8.9 billion (around €7.6 billion) into the chip giant, as part of Donald Trump's strategy to boost the US semiconductor industry.
The government's participation will be financed with the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the CHIPS and Science Act and the $3.2 billion awarded to the company as part of the Secure Enclave program, according to. The company has reaffirmed its commitment to providing reliable and secure semiconductors to the U.S. Department of Defense. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has received to date, bringing the total investment to $11.1 billion.
Trump, via his social media platform, Truth Social, stated that Intel has an "even brighter future." He also explained that he negotiated the capital buyout deal with the company's CEO, Lip-Bu Tan. "As the only semiconductor company conducting cutting-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring that the world's most advanced technologies are American-made," said Lip-Bu Tan.
Historic Investments
"President Trump's focus on American chip manufacturing is driving historic investments in a vital industry that is integral to the nation's economic and national security. We are grateful for the trust the President and the Administration have placed in Intel, and we look forward to working to advance America's technology and manufacturing leadership," he added. "Intel is delighted to welcome the United States of America as a shareholder, helping to create the world's most advanced chips," said Howard Lutnick, U.S. Secretary of Commerce. "As more companies look to invest in the United States, this Administration remains committed to strengthening our country's dominance in artificial intelligence while strengthening our national security."
Under the terms of today's announcement, the government agrees to purchase 433.3 million shares of Intel primary stock at a price of $20.47 per share, equivalent to a 9.9% stake in the company. "This investment provides U.S. taxpayers with a discount off the current market price, while allowing U.S. shareholders to benefit from Intel's long-term business success," the company said in a statement. The executive will not have representation on the board of directors or other governance or information rights. The executive will receive a five-year, $20 per share, warrant for an additional 5% of Intel's common stock, exercisable only if Intel ceases to own at least 51% of the foundry business.