Trump Administration Turns Subsidies Into Shares with $8.9B Intel Deal
The United States becomes one of the largest investors of the chip manufacturer Intel. As Intel and the Trump government announced last night, the United States received shares in the group worth almost nine billion dollars.
State subsidies become company shares
The United States is investing $ 8.9 billion in Intel. The group releases about ten percent of its shares in the state. The money for the financing of the deal comes to a large extent from the money of $ 5.7 billion already approved by the previous government under Biden. This money is made available as part of the so-called chips act, with which the bidet government wanted to promote semiconductor production in the United States. In addition, there are another 3.2 billion dollars from a “Secure Enclave” program, with which the production of chips for the US military was to be financed by Intel.
Like Intel Laised in a press release the US government becomes a passive shareholder with the acquisition of around 10 percent of Intel’s shares. This means that the state will not be represented on the Supervisory Board and that there will be no other rights regarding the operation of Intel or internal information. In the press release, Intel CEO LIP-BU TAN also explained that they wanted to work together to further promote the development of new technologies and the possibilities for manufacturing state-of-the-art products in the USA. Just a few days ago, the Japanese investment giant Softbank agreed to invest around two billion US dollars in Intel – also to expand the chip wear in the USA.
With the entry of the US government at Intel due to the “conversion” of state subsidies in shares in the company, Trump’s Ministry of Commerce continues to blur the boundaries between the government and private companies. Trump Minister already indicated that this rather foreign approach for the United States is now to be pursued further. Among other things, one also wants to move foreign companies such as Samsung and TSMC to offer consideration in the form of participations for state subsidies.
