US Govt. To Buy Nearly 10% Stake In Intel | Global Market News
(RTTNews) – Intel Corporation (INTC) on Friday introduced an settlement with the Trump Administration. Under the phrases of the settlement, the United States authorities will make an $8.9 billion investment in Intel common stock.
The authorities’s equity stake might be funded by the remaining $5.7 billion in grants beforehand awarded, however not but paid, to Intel beneath the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as half of the Secure Enclave program.
Intel will proceed to ship on its Secure Enclave obligations and reaffirmed its dedication to delivering trusted and secure semiconductors to the U.S. Department of Defense.
The $8.9 billion investment is along with the $2.2 billion in CHIPS grants Intel has obtained thus far, making for a complete investment of $11.1 billion.
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” mentioned Lip-Bu Tan, CEO of Intel. “President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”
Under the phrases of the announcement, the federal government agrees to buy 433.3 million major shares of Intel common stock at a price of $20.47 per share, equal to a 9.9 % stake within the company.
The authorities will obtain a five-year warrant, at $20 per share for an extra 5 % of Intel common shares, exercisable provided that Intel ceases to own not less than 51% of the foundry business.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
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