Domain: tiger-web1.srvr.media3.us The US now owns 10% of Intel | Money Talk
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The US now owns 10% of Intel

Posted on 8/22/25 at 3:28 pm
Posted by SlidellCajun
Slidell la
Member since May 2019
16298 posts
Posted on 8/22/25 at 3:28 pm
Interesting development

Not sure how it’s structured.

It was originally designed to transfer the grant given under the chips act to an equity purchase.

I can see how this benefits Intel but How do we as citizens benefit?

Posted by bigjoe1
Member since Jan 2024
1665 posts
Posted on 8/22/25 at 3:30 pm to
As I understand it, INTC will start building production facilities in the U.S. and that creates jobs
Posted by Mariner
Mandeville, LA
Member since Jul 2009
2586 posts
Posted on 8/22/25 at 3:36 pm to
Does this mean we should get stock? Usually when the government gets involved everything goes down the toilet.
Posted by Teddy Ruxpin
Member since Oct 2006
40683 posts
Posted on 8/22/25 at 3:49 pm to
Oof
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
40677 posts
Posted on 8/22/25 at 3:56 pm to
quote:


As I understand it, INTC will start building production facilities in the U.S. and that creates jobs


What does any of that have to do with the government taking an equity stake in the company?
Posted by SlidellCajun
Slidell la
Member since May 2019
16298 posts
Posted on 8/22/25 at 4:19 pm to
quote:

What does any of that have to do with the government taking an equity stake in the company?


Yeah

That could have happened without a multi billion dollar investment

We shouldn’t have to buy stock in companies to get them to employ American workers.

This post was edited on 8/22/25 at 4:22 pm
Posted by bigjoe1
Member since Jan 2024
1665 posts
Posted on 8/22/25 at 4:22 pm to
quote:

That could have happened without a multi billion dollar investment


But, could INTC make the investment without the government?
I'm not all that comfortable about it either. Got a lot of questions how this works long term but, I think it is a national security issue an chip production has to come back to this country
Posted by SlidellCajun
Slidell la
Member since May 2019
16298 posts
Posted on 8/22/25 at 4:55 pm to
I keep hearing the issue is national security but when it comes to national security, there’s other industry that also enters that realm.

For instance- energy. Serious national security issues there.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52299 posts
Posted on 8/22/25 at 5:01 pm to
quote:

As I understand it, INTC will start building production facilities in the U.S. and that creates jobs


INTC already has a facility in Arizona, Oregon, and was in production to build one in Ohio and New Mexico

However those were put on hold since the yo-yoing of the CHIPS Act
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52299 posts
Posted on 8/22/25 at 5:02 pm to
quote:

I keep hearing the issue is national security but when it comes to national security, there’s other industry that also enters that realm.

For instance- energy. Serious national security issues there.


No modern weapon or defense systems will work without TSMC or Intel at this point. If Intel was left to go under...
Posted by bigjoe1
Member since Jan 2024
1665 posts
Posted on 8/22/25 at 5:10 pm to
quote:

Daniel Morgan, senior portfolio manager at Synovus Trust, said Intel's ( INTC ) problems are beyond a cash infusion from SoftBank or equity interest from the government.

"Without government support or another financially stronger partner, it will be difficult for Intel ( INTC ) foundry unit to raise enough capital to continue to build out more Fabs at a reasonable rate," he said, adding that Intel ( INTC ) "needs to catch up with TSMC from a technological perspective to attract business."

Lutnick said this week any stake would be non-voting, meaning it would not enable the U.S. government to tell the company how to run its business.

Intel ( INTC ) declined to comment on Friday.

Federal backing could give Intel ( INTC ) more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product road map and challenges in attracting customers to its new factories.
Here's a Fidelity article on the deal LINKFidelity
Posted by slackster
Houston
Member since Mar 2009
91503 posts
Posted on 8/22/25 at 5:34 pm to
This will either be the last time we do something like this or it will be the first of many.

An otherwise stable company is now owned in part by the US federal government. What a disaster.
Posted by lsuconnman
Baton rouge
Member since Feb 2007
4777 posts
Posted on 8/22/25 at 5:38 pm to
quote:

I can see how this benefits Intel but How do we as citizens benefit?


This one looks pretty straight forward. They were given a grant, which was subsequently converted to an investment.

The real question is why did Intel just roll over?
Posted by AuburnTigers
9x National Champion
Member since Aug 2013
17432 posts
Posted on 8/22/25 at 5:44 pm to
Slippery slope towards fascism
Posted by lsuconnman
Baton rouge
Member since Feb 2007
4777 posts
Posted on 8/22/25 at 6:02 pm to
Time will tell. With the available information the current arrangement is illogical.

If Intel is truly stable, the shareholders should revolt. It’s hard to believe they couldn’t have gotten more favorable terms if they solicited investment from sovereign wealth funds, or threatened to reincorporate to some tax haven like Ireland.

If they’re actually unstable, this is just phase one for an anticipated bailout.
Posted by AuburnTigers
9x National Champion
Member since Aug 2013
17432 posts
Posted on 8/22/25 at 6:06 pm to
quote:

this is just phase one for an anticipated bailout.
its all a bailout. These companies are failing to compete in the market place. MP couldnt compete with China and now Intel is falling behind in the AI tech race, so Trump is bailing them out and hooking them up with the technology to stay competitive.
This post was edited on 8/22/25 at 6:08 pm
Posted by Artificial Ignorance
Member since Feb 2025
1424 posts
Posted on 8/22/25 at 6:08 pm to
So in board meeting, do I get citizenry voting power in addition to my shareholder voting power?
Posted by Stamps74
Member since Nov 2017
1450 posts
Posted on 8/22/25 at 6:32 pm to
quote:

This one looks pretty straight forward. They were given a grant, which was subsequently converted to an investment


You simply listed the transaction. How does this benefit the citizens?
Posted by lsuconnman
Baton rouge
Member since Feb 2007
4777 posts
Posted on 8/22/25 at 6:46 pm to
Because that money was already granted by the previous administration and had no strings attached… just a single share of stock is an improvement for the citizens.
Posted by fallguy_1978
Best States #50
Member since Feb 2018
53351 posts
Posted on 8/22/25 at 8:50 pm to
quote:

Slippery slope towards fascism

Yeah, I don't agree with the government taking ownership in private/public companies. This seems like a terrible idea.
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