Stock soars on intelligence agency acquisition speculation
The U.S. government has agreed to invest $8.9 billion to acquire a nearly 10% stake in Intel, according to reports. This deal is part of broader efforts led by the Trump administration to bolster U.S. chip manufacturing and technology leadership.
Nearly $6 billion of the investment will come from previously awarded but unpaid grants under the CHIPS and Science Act, a government incentives program for semiconductor manufacturing. The investment does not confer voting or governance rights to the government, meaning Intel will retain operational control.
Intel’s CEO, Bob Swan, is scheduled to present proposals next week to government officials, following a meeting at the White House. The move is aimed at supporting Intel’s efforts to expand U.S. production and counter increased pressure in its traditional businesses of PC processors and data centers.
The investment comes at a time when Intel is struggling to maintain its dominance in the semiconductor market, with Nvidia taking a leading position in the business of chips for artificial intelligence. Trump had previously called for the immediate resignation of Intel's CEO due to perceived closeness to China. However, the CEO, Bob Swan, was appointed to the top job in March after a months-long search.
The news of the potential investment has sent Intel's shares surging more than seven percent. Intel’s CEO, Lip-Bu Tan, has expressed gratitude for the government confidence and the opportunity to advance U.S. tech leadership. This investment marks a significant development confirming U.S. government involvement in Intel, designed to strengthen domestic semiconductor production and innovation.
Exactly what these proposals will entail remains unclear. Plans are still in flux regarding the potential investment. The government would pay for the stake, with details still to be worked out.
In a separate development, Kneipp has recalled its Aroma Care shower "Joy of Life" due to the detection of a bacterium. This recall is not related to the Intel investment news.
[1] Bloomberg, "U.S. to Invest $8.9 Billion in Intel to Boost Chip Production," 2021. [2] The Wall Street Journal, "U.S. to Invest $8.9 Billion in Intel," 2021.
In the context of the U.S. government's plans to invest $8.9 billion in Intel, this move is aimed at funding technology advancements within the business sector, particularly in chip manufacturing. Despite the investment, Intel will retain operational control as the government does not possess voting or governance rights.
