The U.S. government is set to invest $8.9 billion into Intel, largely using funds that were already allocated to the company. Intel announced that this investment will use the remaining $5.7 billion in grants from the Biden administration’s CHIPS Act, supplemented by an additional $3.2 billion associated with its Secure Enclave program.
During a recent press briefing, former President Donald Trump confirmed the investment, stating that Intel CEO Lip-Bu Tan agreed to provide the government with a 10% stake in the company. Trump had previously called on Tan to resign due to concerns over his connections to China, suggesting that this deal could enable Tan to retain his position.
Trump indicated that he presented the idea of a partnership between Intel and the U.S. government during negotiations with Tan, asserting that it would benefit both parties. Thus far, Intel has received $2.2 billion under the CHIPS Act.
According to Intel, this government investment will involve passive ownership, meaning there will be no representation on the Board or governance rights. Tan expressed gratitude for the confidence placed in Intel, emphasizing the commitment to enhancing U.S. technology and manufacturing capabilities.
The announcement of this deal follows SoftBank’s recent decision to invest $2 billion in Intel to support chip production in the U.S. Treasury Secretary Scott Bessent hinted at the government’s role in this investment earlier in the week, describing it as a conversion of grants aimed at stabilizing Intel’s production operations.
Trump also indicated his intent to pursue similar deals in the future, suggesting an ongoing focus on government collaboration with private companies.
Source: https://www.theverge.com/news/764480/intel-donald-trump-lip-bu-tan-deal