Trump Administration Considering Acquiring 10% Stake in Intel
According to Bloomberg, the Trump administration in the United States is negotiating with Intel to convert part or all of the funding from the Chips Act into equity, aiming to acquire about 10% of the shares of this struggling American chip manufacturer. The report cited White House officials and sources familiar with the matter, stating that this move could involve approximately $10 billion.
Due to this news, Intel's stock fell by about 3% on Monday (0818), closing at $23.68, after rising the previous week due to market expectations of federal support. Intel had already been approved for about $10.9 billion in chip act funds for commercial and military production. According to Bloomberg, this amount roughly covers the scale of the government's stake.
Intel declined to comment, and the White House did not respond. Reuters was unable to independently verify the report.
Background and Market Concerns
Last week, media reports stated that after Trump demanded the new CEO, Lip-Bu Tan, to resign due to his relationship with Chinese companies, Tan met with Trump, which sparked market speculation that the U.S. government might directly invest in Intel.
Analysts said that federal financial support could provide more breathing space for Intel's loss-making foundry business, but the company still faces challenges such as a weak product roadmap and insufficient customers for its new factories.
David Wagner, a portfolio manager at Aptus Capital Advisors and an Intel shareholder, pointed out, "The U.S. government intervening to save a blue-chip company means that Intel's competitive position may be worse than people expect." He added that although he is skeptical about the government using taxpayers' money to rescue companies, "it's better than letting Intel become a state-owned enterprise."
Original: www.toutiao.com/article/1840835200133383/
Statement: This article represents the views of the author.