The U.S. government is considering an unprecedented move to acquire a 10% stake in Intel—valued at $10 billion—by converting Chips Act grants into equity, according to Bloomberg. This comes as the semiconductor giant faces challenges in reviving its foundry business and competing globally. 💡
Why It Matters
Intel has struggled with losses in its chip-making division and a delayed product roadmap. Analysts say federal backing could provide crucial support, but critics question using taxpayer funds for corporate bailouts. 🔌
Trump’s ‘Interesting’ Meeting
The talks follow a meeting between former President Donald Trump and Intel CEO Lip-Bu Tan, sparked by Trump’s concerns over Tan’s alleged ties to Chinese firms. While details remain scarce, the move echoes past interventions like the 2009 General Motors bailout. 🚗
Investor Reactions
David Wagner of Aptus Capital Advisors (an Intel shareholder) called the potential deal a “Hail Mary pass” for the company, warning it signals deeper troubles than previously known. Still, he prefers this over full nationalization. 📉
With $10.9 billion in Chips Act grants already earmarked, this equity swap could reshape America’s tech sovereignty race—but will it pay off? Stay tuned. ⚡
