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.
Comment on U.S. takes 10% stake in Intel as Trump flexes more power over big business
bitwolf@sh.itjust.works 3 days ago
So how did they get all that stock for free?
Kissaki@feddit.org 3 days ago
bitwolf@sh.itjust.works 2 days ago
Oh got it. It’s Trump attempting to take credit for Biden’s good legislation.
Now that checks out. Thanks!
festus@lemmy.ca 3 days 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.
Regrettable_incident@lemmy.world 2 days ago
I don’t understand why they would want to build in the US? There’s plenty of places with cheaper labour.
iopq@lemmy.world 2 days 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…
Jakeroxs@sh.itjust.works 2 days ago
Is there some massive geopolitical issue hovering like a guillotine over Taiwan? ;)
NoodlePoint@lemmy.world 2 days ago
For that matter, it was the same problem the US then faced back when it was getting much of their electronics from Japan.
Ross_audio@lemmy.world 2 days ago
Because Biden paid them with grants to build in the US. It’s that simple.
Beyond that there’s stability and the likelihood of not being invaded or facing natural disasters.
There’s meant to be government, legal, and financial institution stability too.
As well as intellectual property defense, trade secrets and NDAs.
Material supplies are meant to be stable too.
When you’re investing in something as specialised as chip manufacturing, labour is a fraction of your concern. Both short and long term.