Intelligence Agencies Agree to Hand U.S. a Share in Their Own Corporation, According to Trump

In a series of developments, Intel, one of the world's leading semiconductor manufacturers, finds itself in the midst of negotiations with the U.S. government regarding a potential stake in the company.

The negotiations stem from the Trump administration's efforts to boost chip production within the United States. Intel's CEO, Lip-Bu Tan, has been a key figure in these discussions, with the administration's interest driven by the desire to strengthen the country's semiconductor industry.

Recent reports suggest that the U.S. government is considering a 10% stake in Intel, a move that would make it one of the company's largest shareholders. This potential investment comes as Intel struggles to revive its fortunes, having fallen behind on construction projects spawned by the CHIPS and Science Act.

The Trump administration's financial ties to Intel might potentially influence other companies to increase their orders for Intel's chips. However, it's important to note that the U.S. government, through its non-voting shares in Intel, has no intention of meddling in the company's business.

The U.S. government's involvement in Intel's business would blur the traditional lines separating the public sector and private sector in the U.S., which remains the world's largest economy. This potential investment follows a similar pattern set during the Great Recession, when the U.S. government injected nearly $50 billion into General Motors, acquiring a roughly 60% stake in the automaker.

Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, receiving about $2.2 billion of the $7.8 billion pledged under the incentives program. However, the company has yet to convert this aid into government-owned shares, and there is currently no public plan for such a conversion.

The Trump administration is also requiring Nvidia and Advanced Micro Devices to pay a 15% commission on their sales of chips in China in exchange for export licenses. This requirement is part of the administration's efforts to control the flow of technology to China.

Some analysts question the wisdom of the government's potential investment in Intel, with U.S. Commerce Secretary Howard Lutnick deriding the CHIPS and Science Act funds given to Intel as a "giveaway" that would better serve U.S. taxpayers if turned into Intel stock. The government's previous investment in General Motors resulted in a roughly $10 billion loss after selling its stock in the company.

Despite these concerns, Intel may have little choice but to do a deal due to its current position of weakness. The company has experienced financial losses in recent years and has been unable to keep pace with the artificial intelligence craze. If the deal is completed, it could provide Intel with the necessary capital to invest in research and development, potentially setting the stage for a resurgence in the company's fortunes.

The negotiations between Intel and the U.S. government are ongoing, and the outcome remains uncertain. However, one thing is clear: the U.S. government is committed to boosting chip production within its borders, and Intel is a key player in this ambitious endeavour.