NBC News - The U.S. has taken a 10% stake in semiconductor maker Intel, adding another chapter in the Trump administration’s exertion of power over big business. It also represents the latest move in an ongoing battle between the U.S. and China to dominate the artificial intelligence industry.
Intel and the Trump administration noted in a joint statement that the U.S. will not seek direct representation on the company’s board and pledged to vote with the current Board of Directors on matters requiring shareholder approval, "with limited exceptions."
President Donald Trump made his own announcement on his Truth Social platform, praising Intel CEO Lip-Bu Tan just two weeks after he called on Tan to resign over alleged China ties.
The stake will be paid for through $5.7 billion in grants already awarded to Intel through the 2022 CHIPs and Science Act, as well as $3.2 billion awarded to the company as part of a program called Secure Enclave. In addition to $2.2 billion in CHIPs grants that Intel has received so far, the total investment by the federal government is $11.1 billion, or 9.9% of Intel's $108 billion stock market value.
This isn't the first time the government has held shares in private companies. During the 2008-2009 global financial meltdown, the U.S. temporarily held stakes in firms as part of a bailout. What makes the move unusual is that the economy is not embroiled in a crisis.
While other firms have seen growth during the larger AI boom, Intel has struggled to keep up with its rivals, with shares down some 60% from the highs seen during the pandemic. But Trump officials are focused on Intel as a means of shoring up U.S. control over semiconductor production as the ongoing AI race with China unfolds.
1 comment:
The next time some right wing idiot tells you you are a commuist, point out thaat the US government under the hypocrite Trump just took over 10% of Intel, so right now it is a Republican led government that is leading the charge to Communism.
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