Trump-Intel deal is official
US According to a press release released on Friday, the government is investing $ 8.9 billion in Intel and represents 9.9 % of the shares in the company.
The investment will be awarded $ 5.7 billion in Intel’s financial aid under the 2022 chip and $ 3.2 billion as part of the ENCLAVE Secure program.
Shortly after the news came after President Trump announced the agreement with reporters at a White House press conference. “I said,” I think you should pay 10 % of your company. “And they said yes – it’s about $ 10 billion.” And I think it’s so much for them. “
Intel’s CEO, Lip -to -Tena, “Trying to Keeping his job” and “$ 10 billion for the United States,” Trump added. He apparently referred to a situation earlier this month because of the reported financial relations with China demanded that you resign. Trump later softened his position after meeting you in Washington.
US Minister of Commerce Howard Luttenik also said the agreement was trying to revive the chip giant and bring more chips to the United States. This is part of a wider strategy to reduce the country’s trust in China.
Brian Kevin, a professor at the Boston College Law School, says it is confusing that the government has been negotiating for joint stocks in Intel, unlike preferential shares.
“This is going to strike me as a wasting time,” he said. “The government said that it wants to make sure that the taxpayer would withdraw something, but it is not yet clear how the investment would do it. If these stocks were preferred, it could include compulsory dividends and ensure that the government would repay.”
While public sector/private sector partnerships in the United States are not quite unusual, legal experts say this type of government intervention is unusual.
“The reason for injecting capital into the automotive industry and insurers [post-2008] “This is not a wider financial crisis,” says Timothy Mayer, a professor of international trade at Duke.
Mayer added that he is interested in seeing “how much the US government will use its leverage in the technology industry to change purchase orders to Intel.”
When asked, the White House went to the social account of President Trump. “The United States has not paid anything for these stocks, and the stock is now worth about $ 11 billion,” Trump wrote. “Building the leading semiconductors and chips, this is what Intel is doing is fundamental to the future of our nation. Grow America again! Thank you for your attention.”
