U.S. Government Acquires 9.9% Stake in Intel for $89 Billion

The United States government has acquired a 9.9% stake in Intel, marking a significant move in the tech industry. The investment, totaling 89 billion dollars, was made through the purchase of Intel's ordinary shares. This transaction positions the U.S. government as a major shareholder in the semiconductor giant. The funds for this acquisition come from a 57 billion dollar subsidy granted to Intel under the Chip and Science Act, as well as an additional 32 billion dollar government-funded project. The government's stake is passive, meaning it does not hold any board seats, governance rights, or information rights. However, the government has agreed to align with the company's board on matters requiring shareholder approval, except in rare exceptions.

The U.S. President has expressed pride in this deal, stating that it is a beneficial move for the company and that it has earned the country hundreds of billions of dollars. Despite some criticism, the President has defended the acquisition, asserting that it is a business decision rather than a shameful act. The President has also indicated a willingness to pursue similar investments in the future, aiming to hold more shares in private enterprises. The President stated that this move is not embarrassing but rather a smart business decision that will bring more funds and job opportunities to the country. The President also emphasized the potential for similar deals in the future, expressing a desire to hold more shares in private companies and support their growth.

This move by the U.S. government is part of a broader strategy to enhance domestic semiconductor manufacturing capabilities. The investment in Intel is seen as a step towards reducing reliance on foreign suppliers and strengthening the country's technological infrastructure. The government's passive stake in Intel ensures that it does not interfere with the company's operations while still benefiting from its growth and success. The government's investment in Intel is part of a broader effort to support the domestic semiconductor industry and reduce dependence on foreign suppliers. By acquiring a stake in Intel, the government aims to bolster the company's financial position and encourage further investment in research and development. This move is expected to have a positive impact on the U.S. economy, creating new job opportunities and stimulating economic growth.