The U.S. government takes 10 percent of Intel

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The U.S. government takes over for $8.9 billion a nearly 10% stake in a declining chip maker Intel . This was confirmed on Friday (local time) by the Trade Secretary Howard Lutnick (64). "The United States of America now has 10 percent Intel," he wrote on platform X. It is simply a “fair agreement for Intel and for the American people”. Intel's stock gained 0.9 percent in property trading on Friday. president Donald Trump will besides meet with the president of Intel Lip-Bu Tan (65) Friday , a White home typical informed.

The government acquires 433.3 million shares from funds from $5.7 billion of unpaid subsidies from the alleged Chips Act, as well as $3.2 billion granted to Intel for safe Enclave. The acquisition price of $20.47 per share is about $4 below the Friday closing price of $24.80. Lutnick stated earlier this week that the package would not give voting rights. Therefore, the government cannot dictate to the company how to conduct its business.

The current agreement represents a return of 180 degrees from Trump. late called on Tana to resign due to his business contacts with China. “He came due to the fact that he wanted to hold the position and yet gave us $10 billion for United States So we made $10 billion," Trump said on Friday about his last gathering with Tan on August 11.

Further State intervention in the economy

The investment in Intel is the latest in a series of different agreements between the US government and companies. In exchange for approval to export any chips to China, the US government receives 15% of sales of Chinese maker Nvidia . In addition, the Pentagon is expected to become the largest shareholder in the MP Materials mining company to increase the production of uncommon earth magnets. While taking over US Steel by nipponese company Nippon Steel, The government negotiated for itself a "golden action" with a certain veto law. Far-reaching interventions in corporate affairs met with criticism. They fear Trump's actions will make fresh business risks.

The government's entry into the company took place during the deep restructuring of Intel. president Tan, who took office in March, is tasked with restoring the pioneer of chips to form, which in 2024 saw an yearly failure of $18.8 billion. Analysts say that government support gives Intel more flexibility in restructuring. However, Daniel Morgan, portfolio manager at Synovus Trust, said that Intel's problems go beyond the request for a cash injection.

Japanese technology investor SoftBank He agreed to invest $2 billion in Intel on Monday. Analysts say that the company is inactive struggling with an underdeveloped map of product improvement and difficulties in acquiring customers for its fresh factories.

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