The Trump administration is reportedly negotiating to acquire a 10% stake in Intel Corp by converting some Chips and Science Act grants into equity, valued at about $10.5 billion.
This potential government stake in Intel raises questions about government involvement in strategic industries while Intel’s share price dropped 5.5% amidst market uncertainty.
Trump Eyes 10% Intel Stake Through Chips Act
The Trump administration is reportedly in confidential talks to acquire a 10% equity stake in Intel Corp. by converting portions of Intel’s Chips Act grants into equity. This discussion arises amid strategic interest in the semiconductor industry.
In these undisclosed negotiations, current White House officials engage with Intel. The aim is to bolster the US semiconductor sector. No public comments have been issued yet by Intel’s leadership or government officials concerning this potential stake. Kush Desai, White House Spokesman, Trump Administration, stated, “No deal is official until it’s announced by the administration.” Source
Intel Shares Drop 5.5% Amid Investment Talks
Intel’s share value experienced a notable decline of 5.5% following the news, despite a previous weekly surge. Analysts suggest this fluctuation reflects investor uncertainty over government intervention in corporate equity.
Potential outcomes include financial and regulatory implications for both Intel and the semiconductor industry. Historical government interventions highlight the complexities involved. However, major cryptocurrency and DeFi markets appear unaffected by this specific event.
Few Precedents for Government Stakes in Semiconductors
Historically, government stakes in strategic companies have been rare but impactful. The current situation with Intel mirrors earlier interventions, although no previous instance involves such a substantial stake in the semiconductor sector.
According to experts, including insights from Kanalcoin, potential outcomes vary widely. Analysts see the move as part of broader economic and technological strategies. Data suggests the impact on digital assets remains minimal.
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