Intel

Intel has announced that it received a $5.7 billion grant from the U.S. government. Under the agreement, confirmed last week by Commerce Secretary Howard Lutnick, Washington acquired a 10% stake in Intel. The move is part of the Trump administration’s broader strategy to expand state influence over key corporations and strengthen America’s leadership in semiconductors.

CFO Confirms Receipt of Funds
Chief Financial Officer David Zinsner, speaking at the Deutsche Bank 2025 technology conference in California, confirmed that the grant had already been received:

“We got it last night. It’s in the balance sheet. This eliminates the need to access capital markets through other channels in the near term.”
The deal also includes an additional 5% warrant, which would be triggered if Intel’s ownership in its foundry division ever dropped below 51%. Zinsner stressed that this scenario is highly unlikely: “I would expect the warrant to eventually expire worthless.”

Foundry Business Under Scrutiny
Intel has long been seeking ways to stabilize its contract manufacturing (foundry) business. While the company has considered taking in an external investor, Zinsner said it would prefer a strategic partner over a purely financial one, but such a move is still “years away.”
A key factor for the future of Intel’s foundry is securing a major customer for its next-generation 14A manufacturing process. Without such a client, Intel has hinted it might exit the foundry business altogether. Despite this, Zinsner downplayed risks at the conference, suggesting Intel continues to look for long-term sustainability.

White House: Deal Not Fully Finalized
While Intel reports receiving $5.7 billion, the White House offered a different perspective, noting the deal is not fully closed. Spokesperson Karoline Leavitt said that “some details are still being finalized by the Commerce Department,” and added that part of the funding – specifically $3 billion from the Secure Enclave program under the Department of Defense – has not yet been fully executed.
The deal falls under the CHIPS and Science Act, which aims to bolster domestic semiconductor production. As part of the agreement, the U.S. government is purchasing 433.3 million Intel shares at $20.47 per share.

Total U.S. Investment Exceeds $11 Billion
According to Seeking Alpha, Intel had previously received $2.2 billion in grants from the CHIPS program, while another $3.2 billion is expected from the Secure Enclave initiative. This brings the total U.S. support to $11.1 billion.
Earlier this month, Intel also secured $2 billion from SoftBank Group through an equity stake. Under the leadership of investor Lip-Bu Tan, the company is undergoing restructuring and aims to reduce its workforce to 75,000 employees.

What Does It Mean for the Market?
The combination of government funding and internal restructuring is expected to help Intel weather its current challenges and maintain a role in the global chip race. At the same time, the Trump administration has strengthened its control over a critical corporation, underscoring that semiconductors are becoming a central battleground in America’s geopolitical rivalry with China and other competitors.

#Intel , #USGovernment , #TRUMP , #Geopolitics , #INNOVATION

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Kevin O'Leary blasted the Trump administration's $11 billion investment in Intel, calling it a waste of taxpayer dollars on a company he says has failed to innovate. The move, announced Friday, gives the U.S. government a 10% stake in Intel, funded through CHIPS Act grants and federal programs.
In a heated CNBC interview, O’Leary said Intel’s performance has been so poor that it doesn’t deserve taxpayer support.
“Intel should have been sold for car parts three years ago,” he said, adding he wouldn’t invest his own money in the company.
President Trump defended the deal, calling it a strategic investment that will strengthen U.S. leadership in advanced chipmaking. Intel confirmed the funds will be used for domestic production and R&D, not debt repayment or shareholder returns.
Critics like economist Peter Schiff warned the deal sets a dangerous precedent, arguing Washington should stimulate private investment with tax incentives instead of picking winners.
Supporters counter that domestic chip production is a national security priority. Analysts say reliance on Taiwan’s TSMC leaves the U.S. vulnerable, and Intel’s role in the supply chain makes it too big to fail.
Still, Intel faces steep challenges, from massive foundry losses to stiff competition from AMD, Arm, and TSMC.

#News #Intel #Trump #InsiderInsights #stock
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President Donald Trump’s administration has taken its first step toward creating a U.S. sovereign wealth fund — the federal government has officially acquired a 10% stake in Intel. The $8.9 billion deal, financed through the CHIPS Act and national security chip funds, marks a major shift in America’s economic strategy.
On Truth Social, Trump declared this is only the beginning:

“I’ll be making deals like this for our country all day long. Stupid people are angry about something that brings jobs and money back to the USA.”

U.S. Eyes Its Own Sovereign Wealth Fund
White House economic adviser Kevin Hassett confirmed the broader goal of building a government-run investment fund capable of systematically acquiring stakes in U.S. companies. Intel’s case, he said, is the first example of how sovereign-style investments could work.
Hassett also hinted that similar deals might not be limited to the chip sector:

“The President believes the U.S. should have a sovereign wealth fund. Intel is the first step.”

Intel Warns: State Ownership Brings Risks
In filings to regulators, Intel cautioned that the government stake could pose several risks:
🔹 International sales impact – some countries may see U.S. state ownership as a barrier to business.

🔹 Deterring partners – converting grants into equity could discourage other government partners.

🔹 Shareholder dilution – shares were issued to the government at a discount, reducing the value for existing investors.

Political Context: Powell and the Fed
During a TV interview, Hassett also addressed the future of Federal Reserve Chair Jerome Powell. Trump has not yet decided whether to replace or keep him when his term ends in 2025. According to Hassett, the review is being led by Treasury Secretary Scott Bessent, who is evaluating “a number of excellent candidates.”
Hassett described Powell’s recent Jackson Hole speech as “reasonable,” but stressed that the Fed has been “too slow to act.”

What’s Next: AI, Crypto, Energy?
Intel remains the only company so far to accept state capital. But analysts warn that if the model expands, firms in other sectors could face similar pressure:
🔹 Artificial intelligence

🔹 Crypto infrastructure

🔹 Energy
Trump’s administration is opening the door to a major transformation of American capitalism — federalized investments in private companies.
One thing is certain: the U.S. government is now a shareholder in one of the world’s biggest chipmakers. And Trump has made it clear: he wants more.

#Intel , #TRUMP , #whitehouse , #Investing , #Fed

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Tech giant Intel is preparing to transfer 10% of its ownership stake to the U.S. government – a move that marks a significant shift in Washington’s approach to strategic technology firms. According to Bloomberg, Intel’s stock jumped nearly 6% after the news broke on Friday.

Government as Intel shareholder
The Trump administration confirmed it plans to acquire roughly a $10 billion stake in the company, whose total market value stands at just over $100 billion. This is not financial aid, but ownership. President Donald Trump commented:
“They agreed to it, and I think it’s a great deal for them.”
The agreement is not yet final. According to the White House, negotiations are ongoing, and Intel CEO Lip-Bu Tan has not yet signed the documents. He is expected to meet with Trump later in the day.

CHIPS Act funding tied to equity stakes
Commerce Secretary Howard Lutnick said that the government decided financial support under the CHIPS Act would no longer come unconditionally. “For our money, we should get equity,” Lutnick stated, clarifying that the required 10% stake would be non-voting shares. This means Washington will not control the company but will still hold a significant ownership stake.
The CHIPS Act was originally signed into law in 2022 under President Biden. Trump is now transforming it into a tool to secure direct ownership in firms deemed critical to national security.

Intel at the center of attention
Intel remains the only U.S. company capable of manufacturing the most advanced semiconductors domestically, including chips for artificial intelligence. Still, it lags behind Taiwan’s TSMC, which produces chips for Apple, Nvidia, Qualcomm, AMD – and even Intel itself.
Earlier this week, Intel attracted another major investor – SoftBank, which bought a 2% stake worth $2 billion. With the government’s expected purchase, Intel is preparing to sell a combined 12% stake in just one week.

“Silicon Heartland” slowed down
Intel has been spending tens of billions of dollars to expand chip production in the U.S. Its largest project is a factory complex in Ohio, dubbed the “Silicon Heartland.” The company intends to use it to manufacture cutting-edge AI chips.
But plans are slowing. In July, CEO Tan warned employees there would be “no more blank checks.” Intel is now scaling back its expansion, and the Ohio plant is unlikely to be operational before 2030 – and only if market conditions do not worsen further.

CHIPS grant as leverage
Intel had previously secured an $8 billion grant under the CHIPS and Science Act. That funding is now being used as leverage to negotiate equity sales. The administration is effectively turning what was once a support program into a mechanism to secure ownership stakes in key companies.

#Intel , #TRUMP , #USGovernment , #NationalSecurity , #worldnews

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