{"id":90180,"date":"2025-08-23T02:33:11","date_gmt":"2025-08-23T02:33:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/90180\/"},"modified":"2025-08-23T02:33:11","modified_gmt":"2025-08-23T02:33:11","slug":"the-trump-intel-deal-is-official","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/90180\/","title":{"rendered":"The Trump-Intel Deal Is Official"},"content":{"rendered":"

The United States government is making an $8.9 billion investment in Intel<\/a>, representing a 9.9 percent stake in the company, according to a press release the company published on Friday.<\/p>\n

The investment will be funded by $5.7 billion in grants Intel<\/a> was awarded under the 2022 CHIPS Act and $3.2 billion the company was awarded as part of the Secure Enclave program, the press release says.<\/p>\n

The news comes shortly after President Trump touted the deal in a White House press conference with reporters. \u201cI said, \u2018I think you should pay us 10 percent of your company.\u2019 And they said yes\u2014that\u2019s about $10 billion,\u201d Trump said. \u201cAnd I think it\u2019s a great deal for them.\u201d<\/p>\n

Trump added that Intel\u2019s CEO, Lip-Bu Tan, \u201cwalked in wanting to keep his job\u201d and \u201cended up giving us $10 billion for the United States.\u201d He was seemingly referring to a situation earlier this month where he called for Tan\u2019s resignation due to the CEO\u2019s reported financial ties to China. Trump later softened his stance after meeting with Tan in Washington.<\/p>\n

Both Trump and US commerce secretary Howard Lutnick have said the deal is meant to revitalize the struggling chip giant and bring more chipmaking back to the United States. The move is part of a broader strategy to lessen the country\u2019s reliance on China.<\/p>\n

Brian Quinn, a professor at Boston College Law School, says it\u2019s confounding that the government has negotiated for common stock in Intel, as opposed to preferred stock.<\/p>\n

\u201cIt strikes me as a colossal waste of time,\u201d he said. \u201cThe government said that it wanted to ensure that taxpayers get something back from this, but it\u2019s unclear how this investment will do that. If it was preferred shares, it could have included mandatory dividends and ensured that the government gets paid back.\u201d<\/p>\n

While public-sector\/private-sector partnerships are not entirely uncommon in the US, legal experts say this type of government intervention is unusual<\/a>.<\/p>\n

\u201cThe reason the government injected capital into the auto industry and insurers [post-2008] was to get them through the crisis,\u201d says Timothy Meyer, a professor in international business law at Duke University. \u201cThis is not a broader financial crisis situation. This is a company that dramatically needs to boost its market share.\u201d<\/p>\n

Meyer added that he\u2019s interested to see \u201cto what extent the US government will use its leverage across the tech industry to shift purchase orders to Intel.\u201d<\/p>\n

When asked for comment, the White House referred WIRED to President Trump\u2019s Truth Social account. \u201cThe United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL,\u201d Trump posted. \u201cBuilding leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The United States government is making an $8.9 billion investment in Intel, representing a 9.9 percent stake in…\n","protected":false},"author":2,"featured_media":90181,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[37054,1376,43,21631,1688,44,714,41,39,42,40],"class_list":{"0":"post-90180","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-chips","9":"tag-donald-trump","10":"tag-headlines","11":"tag-intel","12":"tag-manufacturing","13":"tag-news","14":"tag-politics","15":"tag-top-news","16":"tag-top-stories","17":"tag-topnews","18":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/90180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=90180"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/90180\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/90181"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=90180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=90180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=90180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}