US Government announces 10% stake in chipmaker Intel
17 days ago
- #Intel
- #semiconductors
- #US-government
- US government to take a 10% stake in Intel, investing $8.9bn in common stock.
- Deal aims to strengthen US leadership in semiconductors and boost economic and national security.
- Investment funded by grants, including those from the CHIPS and Science Act.
- Intel CEO Lip-Bu Tan emphasizes commitment to US-made advanced technologies.
- Trump administration's focus on chip manufacturing drives historic investments.
- Intel struggles with capacity expansion and lags behind rival Nvidia.
- Trump previously criticized Tan over alleged ties to China, which Tan denies.
- Deal follows unusual approaches like revenue cuts from Nvidia and AMD for AI chip sales to China.
- Similar government equity stakes seen during 2008 crisis with General Motors.
- Critics question legality and transparency of such deals under Cold War-era laws.