- The US Government is ready to acquire 10% of Intel in exchange for 433 million shares
- But Intel is concerned about Trump’s “significant additional powers” on foreign business
- Trump praised the deal to make the US “richer” and to create more jobs
The upcoming US government owner agreement could have knock-on effects on how Intel handles foreign customers and governments in the future, which could be further reinforced by Trump’s unpredictable trade and customs policies, the company has admitted.
The US government is ready to acquire a 10% share in Intel through a mix of unpaid chips -lov grants and funding in an agreement valued a total of about $ 8.9 billion.
In contrast, Intel will hand over 433 million shares to the government, worth between $ 10-11 billion.
Intel could be affected by its US ownership
The difficult part comes in the form of foreign business because about 76% of Intel’s fiscal revenue from 2024 came from abroad, with popular markets, including China, Singapore and Taiwan.
Being part -owned by the US government means that Intel could be exposed to foreign grant laws, extra rules, litigation, political control and competitor pushback, which could seriously hamper its foreign sales.
“Having the US government as a significant shareholder for the company could expose the company to additional rules, obligations or restrictions, such as foreign grant laws or otherwise, in other countries,” Intel wrote in a SEC archiving.
Intel also noted that the interests of the US government may not reflect the existing shareholders and that its “significant additional powers” could prevent it from pursuing “potential future strategic transactions” from the benefit of shareholders.
President Trump welcomed the deal and claimed they were making the $ 11 billion at zero costs. “I paid zero for Intel, it’s worth about $ 11 billion. Everything goes to the United States,” he wrote on truth social media.
The post continues to explain how Intel’s share price could rise while the US would be “richer and richer.” Trump also noted that the deal would generate “More jobs for America !!!”
“It is difficult to predict all the potential consequences,” Intel concluded.
Intel’s latest quarterly revenue remained flat year over years of $ 12.9 billion led by New CEO Lip-Bu Tan.
