- Intel CFO says the company has just received $ 5.7 billion from the US government
- Trump secured a 10% share in Intel in exchange for financial support
- The trade aims to keep Intel in ownership of its foundry
Intel CFO David Zinsner said the company received $ 5.7 billion from the US government earlier this week as part of a deal that Trump hopes will make Intel profitable and return billions to the United States.
The deal involves Intel, which gives a 10% share to the US government, negotiated by Trump, who also secured a 5% approval if Intel’s ownership of its foundry falls below 51%.
Despite signs that the agreement is definitely underway, the White House press secretary Karoline Leavitt said it is still completed by the Department of Commerce.
Intel’s US Government Agreement seems to move on
Looking ahead, Zinsner suggested that Intel may have to seek external investments for its foundry device to attract strategic investors over purely financial offers, but this could be years away.
Trump’s share in Intel is intended to encourage the company to maintain control of its foundry business, increase the US economy and support jobs.
“I don’t think there’s a high probability that we would take our share below 50%,” said Zinsner (via Pakinomist). “So, in the end, I would expect (the order) to expire worthless.”
However, Intel is not so sure that the effects that Trump’s agreement could have on the company, citing potential complications in securing international offers. Intel also noted that the White House interests may differ from its own.
Despite the scope of the agreement, Intel is still set to dismiss thousands of workers. Since joining just months ago, New CEO Lip-Bu Tan has promised to cut off approx. 75,000 to turn the business around.
Last month, Intel announced quarterly revenue that was flat year-over-year-to-be $ 12.9 billion. Intel shares rose 0.2% after this week’s message, but despite an increase of 21.58% this year to date, they are still down 50.85% over the past five years.
