U.S. Government Now Holds 10% Stake in Intel
fliptop writes:
Commerce Secretary Howard Lutnick delivered major news on Friday, confirming that the United States has finalized an investment deal with Intel, securing a 10% ownership stake in the semiconductor powerhouse. This development marks a significant step in bolstering America's position in global technology amid ongoing concerns about supply chain vulnerabilities and competition from abroad:
The agreement stems from negotiations tied to the 2022 CHIPS and Science Act, which aimed to revitalize domestic chip production. Under the terms, the U.S. gains a nonvoting equity position in Intel in return for federal funding support.
While specific financial details remain under wraps, the move aligns with efforts to ensure taxpayer dollars yield tangible returns for national interests. Intel, for its part, has committed billions to constructing advanced manufacturing facilities in Ohio, with full operations expected by 2030. This follows an $8 billion grant finalized last fall to accelerate those projects.
[...] Critics from the left may decry increased government involvement in private enterprise, but proponents argue it's essential for safeguarding national security in an era of geopolitical tensions. As Lutnick noted, the pact benefits both Intel and the public, positioning the U.S. to lead in semiconductors-a sector vital for everything from consumer electronics to defense systems.
This deal could set a precedent for future public-private partnerships, ensuring that American ingenuity drives global progress while keeping strategic assets firmly under domestic control. With operations ramping up in the coming years, the long-term impacts on the economy and technology landscape will be worth watching closely.
Intel press release. Also at Politico, Newsweek and NBC News.
Previously: Trump Administration Considering US Government Purchase of Stake in Intel
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