United States The government makes an investment $ 8.9 billion in Intel, which is 9.9 percent of the company’s shares, in accordance with a press statement published by the company on Friday.
The investment will be financed from $ 5.7 billion in a subsidy that Intel has been granted under the Act on systems 2022, and the company received $ 3.2 billion under the Secure Enclave program, reports a press release.
The message appears shortly after President Trump advertised a contract at a press conference of the White House with reporters. “I said,” I think you should pay us 10 percent of your company. ” And they said “yes” – it’s about $ 10 billion – said Trump. “I think it’s a great thing for them.”
Trump added that the general director of Intel, Lip Buc Tan, “entered, wanting to keep his work” and “eventually gave us $ 10 billion for the United States.” Apparently he meant the situation at the beginning of the month in which he called for the resignation of TAN due to the submitted financial recorders of CEO with China. Later, Trump softened his position after meeting Tan in Washington.
Both the secretary of Trump trade and the US Howard Lutnick said that the contract aims to revive the fighting giant chip giant and restore more chips to the United States. This movement is part of a wider strategy for reducing the country in China.
Brian Quinn, a professor at Boston College Law School, claims that it is misleading, that the government negotiated ordinary actions in Intel, unlike the preferred actions.
“It strikes me as a colossal waste of time,” he said. “The government said that he wants to make sure that taxpayers would recover something, but it is not clear how this investment will do it. If it were preferred shares, it could include mandatory dividends and ensure that the government will receive a refund.”
While the partnership of the public sector/private sector are not completely occasional in the USA, legal experts claim that this type of government intervention is extremely.
“The reason why the government introduced capital to the automotive industry and insurers [post-2008] He was to go through the crisis – says Timothy Meyer, professor of international business law at the Duke University. “This is not a broader situation of the financial crisis. It is a company that has dramatically increasing its market share.”
Meyer added that he is interested “to what extent the US government will use its lever in the technology industry to transfer orders to Intel.”
Asked for a comment, the White House directed the President Trump connected to the social account. “The United States paid nothing for these shares, and the shares are now valued at around $ 11 billion. This is a great opportunity for America, as well as a great opportunity for Intel,” wrote Trump. “Building leading semiconductors and tokens, which Intel does, is of fundamental importance for the future of our nation. Again, to make America great! Thank you for paying attention to this matter.”