Due to its ongoing financial difficulties, Intel sold a portion of its shares in exchange for support from the Trump administration. The company transferred 10% of its shares under the CHIPS Act. This move secured a total financial support of approximately $11 billion.

Intel sells shares to the US government

Recently, Intel sold a 10% stake to the Trump administration for $7.9 billion. Prior to this agreement, the company had received another $3 billion in funding under the same law. Experts believe this agreement will accelerate Intel’s domestic production efforts and increase the interest of other chip designers seeking to manufacture in the US. The Trump administration has also announced that it will increase its stake acquisitions in such smaller semiconductor companies.

This government-backed support for Intel, which has been struggling with a financial crisis for some time, aims to improve the company’s financial situation. Trump, who previously criticized Intel management for violating sanctions, has now opted for a stake acquisition by providing financial support to the company. This demonstrates the government’s approach to strategic companies in the technology sector and its policy of encouraging domestic production.

This agreement is considered a significant turning point in the semiconductor sector. The continued existence of a major company like Intel with government support is seen as part of the US’s efforts to strengthen its dominance in this strategic sector.

The agreement aims to strengthen supply chain security by encouraging domestic production and establish an advantage over competitors like China. It is also noted that this move could cause other major chip manufacturers, such as TSMC, to reconsider their relationship with the US government.