Trump Policy: The government has secured 10% stake in the Chip Company Intel, which is struggling with problems. This was revealed by Commerce Secretary Howard Lutnick on Friday. This step has been taken as part of the trump government’s efforts to control the US corporate world. The US government has invested around $ 890 crore at Intel, the only company that makes advanced chip in the US. According to the press release, the government has bought around 43.33 shares per share at a price of $ 20.47. The government has bought these shares at discounts. On Friday, it closed at $ 1.30, $ 1.30, at $ 24.80 on Nasdac.
Where did the fund come from for Intel’s shares?
The government has bought 43.33 crore shares of Intel for about $ 890 crore. Out of this, about $ 570 crore has come from grants given under the Chips Act, which were earlier approved but the payment was not made. At the same time, the remaining $ 320 crore has come from a separate government program, which aims to build safe chips. Regarding the deal, US President Donald Trump said that the US has not spent anything for the purchase of Intel’s shares and now its shares have a value of about $ 1100 crore. He wrote on his social media platform Truth Social that it is not only a big deal for America but also for Intel.
Government can take 5% share, but no place in board
The government has purchased a 10% stake in Intel. Apart from this, the government has also got the right that if Intel does not have a mazority share of its foundry business, it can use 5% stake and option to buy. However, Intel has made it clear that the government will not get a place in the board nor the government will have any role in running it i.e. governance rights.
How is Intel’s business status?
Intel is currently struggling with a lot of problems as its technology is lagging behind the Taiwan semiconductor manufacturing company. Taiwan semiconductor manufacturing company makes chips for companies like Apple, NVDia, Qualcomm, AMD as well as Intel. Intel is spending billions of dollars to build several chip factory in Ohio. The company has called it Silicon Heartland and most advanced chips including AI will be built here. However, in the month of July, the company told the employee that the speed of its construction is being sluggish in view of the market situation and now the factory located in Ohio will start in the year 2030.