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 (about €7.6 billion) into the chip giant, as part of Donald Trump's strategy to boost the domestic 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 US CHIPS and Science Act and the $3.2 billion granted to the company as part of the program. Secure Enclave, according to a statement from Intel.
The company has reaffirmed its commitment to providing reliable and secure semiconductors to the US Department of Defense. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants that Intel has received to date, bringing the total investment to $11.1 billion.
Turmp, via his social network Truth, has stated that Intel has an "even brighter future." He also explained that he has negotiated the agreement to enter the capital with the company's CEO, Lip-Bu Tan.
"As the only semiconductor company that does R&D and manufacturing of cutting-edge logic 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 most advanced chips in the world," said Howard Lutnick, U.S. Secretary of Commerce. "As more companies look to invest in America, this administration remains committed to strengthening our country's dominance."
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. and existing 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.
