Trump’s intel agreement has already gioven the government a gain of $ 1.9 billion on paper

“The United States of America now has and now controls 10% of Intel, a large American company that has an even more incredible future,” wrote Trump in an article.

The United States government obtains participation thanks to the conversion of $ 11.1 billion in funds and fund promises issued previously. All in all, the government obtains 433.3 million shares without voting at a price of $ 20.47 each – a ceremony of the closing price of Friday at $ 24.80. This propagation means that the US government is already gaining $ 1.9 billion on paper.

The remarkable turn of events made from the US government one of the largest shareholders in Intel at a time when Santa Clara’s society in California is abandoning more than 20,000 workers as part of its last rebound attempt after years in a variety of CEOs.

The current CEO of Intel, LIP-BU Tan, has only been at work for a little more than five months, and earlier this month, it seemed to be fragile field already after certain legislators have raised national security problems concerning its investments in Chinese companies when it was capitalist of the company. Trump hung on to these concerns in a post of August 7 demanding that this tanning resign.

But Trump fell after Tan, born in Malaysian, professed his allegiance to the United States in a public letter to Intel employees and went to the White House to meet the president, which led to an agreement that now has the US government that the company is on the return track after losing more than $ 22 billion since the end of 2023. Trump welcomed Tan as CEO “highly respected”.

In a statement, Tan applauded Trump for “conducted historical investments in a vital industry” and decided to reward his faith in Intel. “We are grateful to the confidence that the president and the administration have placed in Intel, and we are impatient to work to advance the technology and manufacture of the United States,” said Tan.

The current course of Intel shares is slightly higher than that when Tan was hired in March and more than 60% below its summit of around $ 75 reaching 25 years ago when its fleas still dominated personal computer boom before being scratched by a passage to smartphones a few years later. The business value of the company currently amounts to around $ 108 billion – a fraction of current Ching ankle, NVIDIA, which is worth 4.3 billions of dollars.

The participation comes mainly from subsidies by the American government in Intel thanks to the chips and science act which was launched under the administration of President Joe Biden as a means of promoting more national manufacturing of computer flea to reduce dependence on the overseas factories.

But the Trump administration, which regularly managed the Biden administration policies, saw the fleas act as a useless gift and now hopes to make a profit of the funding that had been promised to Intel.

“We believe that America should benefit from negotiations,” said US Secretary to Trade Howard Lunick earlier this week. “It is obvious that this is the right decision to make.”

About $ 7.8 billion had been promised in Intel as part of the incentive program, but only $ 2.2 billion had so far been funded. Additional $ 3.2 billion in government investment come from the funds of another program called “secure enclave”.

Although the American government cannot vote with its actions and will not have a seat on the Intel board of directors, criticism of the agreement consider it as disturbing cross -pollination between the public and private sectors which could harm the technological industry in various ways.

For example, more technological companies may feel obliged to buy chips potentially lower than Intel with favorable curry with Trump at a time when he already waged a trade war that threatens to affect their products in a potential scenario cited by Scott Lincicome, vice-president of the general economy of the CATO Institute.

“Overall, it is a horrible decision that will have real damage to American companies, American technological leadership and the American economy as a whole,” Lincicome said on Friday.

The 10% participation could also intensify the pressure already confronted with tanning, especially if Trump begins to set the course of Intel shares while using his penchant to celebrate his success in business.

Nancy Tengler, CEO of Money Manager Laffer Tengler Investments, is one of the investors who abandoned Intel years ago due to all the challenges that Intel is confronted.

“I do not see the advantage for the American taxpayer, and I do not necessarily see the advantage, for the flea industry,” said Tengler while increasing concerns about Trump’s interference in Intel’s affairs.

“I don’t care about your businessman, to give him to the private sector and to let people like me to be the critic and let the government go to government affairs.” Said Tengler.

Although rare, it is not unprecedented for the American government to become an important shareholder in a leading company. One of the most notable cases occurred during the big recession in 2008 when the government injected nearly $ 50 billion into General Motors in exchange for a participation of around 60% in the car manufacturer at a time when it was about to go bankrupt. The government ended up with a loss of about $ 10 billion after sold its stock in GM.

The participation of the American government in Intel coincides with Trump’s push to bring production to the United States, which was a focal point of the trade war he has made in the world. By reducing the country’s dependence on chips produced abroad, the president thinks that the United States will be better placed to maintain his technological advance towards China in the race to create artificial intelligence.

Before even winning 10% participation in Intel, Trump had taken advantage of his power to reprogram the operations of large computer companies. The administration requires NVIDIA and Advanced Micro Devices, two companies whose chips feed the enthusiasm of the AI, to pay a commission of 15% on their sales of fleas in China in exchange for export licenses.

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Liedtke reported in San Ramon, California.