Intel is ‘Too Big to Fail’ But Too Weak to Win

Analysts believe the US government’s involvement in the semiconductor company is a double-edged sword.
In a highly unusual move, the Trump administration on Monday announced an $8.9 billion investment in Intel, giving the US government a 9.9% stake in the company. The investment will be funded through $5.7 billion in pending CHIPS and Science Act grants and $3.2 billion from the Secure Enclave program. Combined with $2.2 billion in earlier CHIPS grants, total government support for Intel now stands at $11.1 billion. “As the only semiconductor company that does leading-edge logic R&D and manufacturing in the US, Intel is deeply committed to ensuring the world’s most advanced technologies are American-made,” Intel CEO Lip-Bu Tan said. The agreement also provides the government with a five-year option to purchase an additional 5% of Intel shares at $20 per share, exercisable
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Siddharth Jindal
Siddharth is a media graduate who loves to explore tech through journalism and putting forward ideas worth pondering about in the era of artificial intelligence.
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