U.S. officials are discussing an equity stake in Intel as a conversion of grants into an investment, following $7.9 billion of grants approved under the Biden administration. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent clarified that this stake is intended to stabilize Intel without assuming governance control. The stake is said to remain non-voting, ensuring no directive role for the U.S. government. This initiative aligns with efforts to enhance chip production capabilities domestically amidst Intel's competitive struggles.
U.S. officials emphasize that the equity stake in Intel is a way to convert grants into investment, not a means to gain control over the company.
Secretary Bessent stated that any investment in Intel aims to support its stability and production capacity, not to enforce purchasing requirements from U.S. companies.
Commerce Secretary Lutnick stressed the goal is to obtain equity for the funds allocated, asserting it's about investment return rather than governance.
The proposed equity stake comes as Intel faces challenges in a competitive market, with external investments like SoftBank's $2 billion also being pivotal.
Collection
[
|
...
]