Intel officially announced an agreement with President Donald Trump’s administration on Friday afternoon, following Trump’s statement that the government would take 10% stake in the struggling chipmaker.
Intel says the government is “investing $8.9 billion in Intel common stock,” but the administration does not appear to have committed any new funds. Instead, they are simply doing good things with what Intel describes as “not being awarded to a grant previously but not yet paid to Intel.”
Specifically, $8.9 billion should come from $5.7 billion awarded under the Biden administration’s Chips Act, but from $5.7 billion awarded to Inter and $3.2 billion awarded by the Biden administration through the Safe Enclave Program.
In a social post on his social networks true, Trump wrote, “The US paid nothing for these stocks.” Nevertheless, he described it as “it’s a big deal for America and a big deal for Intel.”
Trump is critical of the Chips Act, calling it “terrifying and terrifying,” and urges House Speaker Mike Johnson to “get rid of it.” In a regulatory filing in June, Intel said it had already received $2.2 billion in chips law funds, but since then it requested an additional $850 million refund that the government has not yet paid.
According to The New York Times, some bankers and lawyers believe the CHIPS Act may not allow the government to convert its grants fairly.
In addition to targeting the Chips Act, earlier this month, Trump accused Intel CEO Lip-Bu Tan of a conflict of interest, saying he would “resign soon.” The president was more positive about Tan on Friday, and said in truth, that he “negotiated with Lip-Bu Tan, the company’s highly respected CEO.”
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In a statement, Tan said the company “looks forward to promoting US technology and manufacturing leadership, as we appreciate the confidence that the president and administration has placed on Intel.”
According to an Intel release, government investments are “passive” and have no rights to boards or other governance or information.
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