- Intel has reportedly made conversations with the White House
- This could see the US government take a share in the business
- Intel is the most prominent semiconductor manufacturer in the US
The White House has confirmed that it is negotiating an agreement that could deliver a 10% share in Intel to the US government.
The chipmaker has been subjected to severe uncertainty in recent months with several quarters of revenue, but the agreement may involve trading in Intel shares for existing state scholarships.
“The president first wants to set America’s needs, both from a national security and financial perspective,” the White House press secretary told Karoline Leavitt to journalists. “We should get a share of equity for our money. We get equity in return for it … instead of just giving away grants.”
Trade War
It’s a surprise to see President Trump turning away from Lassiaze -Faire liberal economic policies that have dominated the US economy for decades – all to support Intel.
Trump previously called for Intel CEO LIP-BU Tan to resign-to call him ‘very conflict’, probably because of his stint as CEO of Cadance Design Systems, an organization that recently relies on the blame of illegally selling export-controlled tech to organizations with connections to the Chinese military.
Intel is perhaps the greatest American hope of competing with Chinese and Taiwanese chipmaking giants -which is almost undoubtedly ahead of the Semiconductor Market match.
However, Intel’s recent redundancies have seen between 15-20% of US factory workers who became superfluous, indicating that domestic capabilities do not grow as the administration may have hoped.
The potential agreement could give Intel the stability it needs to invest in domestic production, and could see the company building a flagship production heap in Ohio – even though the White House rejected the discussion of potential offers such as ‘speculation’.
Fellow Chipmaking Giants Nvidia and AMD recently agreed that 15% of chip sales will now go to the US government in exchange for export licenses to China – despite growing national security concerns.
Via BBC
