The US is investing $8.9 billion into Intel, however many of the funds come from cash that the federal government was purported to pay the embattled chipmaker anyway. In an announcement on Friday, Intel mentioned the federal authorities will fund its funding utilizing the remaining $5.7 billion in grants it hasn’t but obtained beneath the Biden administration’s CHIPS Act, along with the $3.2 billion obtained as a part of the Safe Enclave program.
President Donald Trump confirmed the funding throughout a press briefing earlier than the formal announcement, saying Intel CEO Lip-Bu Tan agreed to offer the federal government a ten % stake. Earlier this month, Trump referred to as on Tan to resign over his ties to China, and at the moment he positioned the deal as a approach for the chief to “maintain his job.”
Trump advised reporters that he floated the supply throughout negotiations with Tan. “I mentioned, ‘I believe it could be good having the USA as your companion,’” Trump mentioned. “They’ve agreed to do it, and I believe it’s an important deal for them.” Intel has already obtained $2.2 billion beneath the CHIPS Act.
The federal government’s funding in Intel “shall be a passive possession, with no Board illustration or different governance or data rights,” in response to Intel. “We’re grateful for the arrogance the President and the Administration have positioned in Intel, and we sit up for working to advance U.S. expertise and manufacturing management,” Tan says within the press launch.
The affirmation of the deal comes simply days after SoftBank introduced plans to take a position $2 billion into Intel to “additional increase” chipmaking within the US.
Treasury Secretary Scott Bessent hinted on the authorities’s potential funding this week, saying throughout an interview with CNBC that it “could be a conversion of grants” meant to “stabilize the corporate for chip manufacturing right here within the US.”
It doesn’t look like that is the top for Trump’s strategy to deal-making, as he mentioned in the course of the briefing that “he’ll do extra of them” sooner or later.
Replace, August twenty second: Added data from Intel.
