US Government Secures 10 Percent Stake in Intel Through $11.1 Billion Conversion
The US government has acquired a 10 percent stake in Intel through the conversion of $11.1 billion in previously issued funds, marking a significant investment in the tech giant.
President Donald Trump announced on Friday that the US government now holds a 10 percent stake in Intel, a move that comes after previous criticism of the company's leadership.
The government acquired these shares through the conversion of $11.1 billion in previously issued funds and pledges, gaining an initial paper profit of $1.9 billion.
This investment makes the US government one of Intel's largest shareholders at a time when the company is undergoing significant restructuring due to past missteps and the departure of over 20,000 workers.
The stake was secured primarily through the CHIPS and Science Act, aimed at fostering domestic manufacturing of computer chips to reduce dependence on overseas factories.
Critics argue that this deal could introduce problematic cross-pollination between public and private sectors, potentially harming the tech industry.
Meanwhile, supporters believe it will bolster US technological leadership, especially in the face of competition from countries like China.
Intel's CEO, Lip-Bu Tan, expressed appreciation for the government's confidence in the company, emphasizing its commitment to advancing US technology and manufacturing leadership.
The government acquired these shares through the conversion of $11.1 billion in previously issued funds and pledges, gaining an initial paper profit of $1.9 billion.
This investment makes the US government one of Intel's largest shareholders at a time when the company is undergoing significant restructuring due to past missteps and the departure of over 20,000 workers.
The stake was secured primarily through the CHIPS and Science Act, aimed at fostering domestic manufacturing of computer chips to reduce dependence on overseas factories.
Critics argue that this deal could introduce problematic cross-pollination between public and private sectors, potentially harming the tech industry.
Meanwhile, supporters believe it will bolster US technological leadership, especially in the face of competition from countries like China.
Intel's CEO, Lip-Bu Tan, expressed appreciation for the government's confidence in the company, emphasizing its commitment to advancing US technology and manufacturing leadership.
