The semiconductor maker has struggled to keep up in the artificial intelligence boom with rivals such as Nvidia and AMD.

Trump tweet:

It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future. I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter.

    • festus@lemmy.caEnglish
      16·
      6 hours ago

      When Biden was president the Democrats passed the Chips Act, which has grants for chipmakers to build in the US. When Trump took power he basically stopped issuing these grants to companies that were set to get them.

      My understanding is that basically Intel will give 10% of itself if Trump stops blocking the grants it was already set to get. I guess Intel’s thinking is that if they make the US a part owner, then Trump won’t obstruct the company so much.

      This might sound like good news (kind of) in that the government is getting equity in return for the money, but I doubt Trump will enforce the original requirements and purpose of the grants, so Intel probably won’t end up finishing many of the factories it was supposed to build. It also sets a precedent that you can’t rely on goverment grants to do things as future parties may change the terms of the deal retroactively, even after you already started.

        • iopq@lemmy.worldEnglish
          4·
          4 hours ago

          In case of war the country needs national supply of chips to put in rockets, planes, everything really.

          If you make everything in Taiwan and that’s the place that’s getting blockaded by enemy Navy…

    • Kissaki@feddit.orgEnglish
      3·
      6 hours ago

      The stake will be paid for through $5.7 billion in grants previously awarded to Intel under the 2022 U.S. CHIPS and Science Act, plus $3.2 billion awarded to the company as part of a program called Secure Enclave. It’s a formerly classified initiative that Congress appropriated funds for in 2024 after lobbying by Intel, Politico reported in 2024.

      Including $2.2 billion in CHIPs grants Intel has received so far, the total investment is $11.1 billion, or 9.9%. Intel is valued at about $108 billion on the stock market.

      • bitwolf@sh.itjust.worksEnglish
        31·
        6 hours ago

        Oh got it. It’s Trump attempting to take credit for Biden’s good legislation.

        Now that checks out. Thanks!