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U.S. government takes 10% stake in Intel

(www.cnbc.com)
607 points givemeethekeys | 1 comments | 22 Aug 25 21:01 UTC | HN request time: 0s | source
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MyOutfitIsVague ◴[22 Aug 25 21:43 UTC] No.44990202[source]▶
> the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company

> The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars

I don't understand. Can somebody explain to me how the government made an investement, bought shares, but paid nothing?

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heyheyhey ◴[22 Aug 25 21:48 UTC] No.44990265[source]▶
I think a better rephrasing is "government is giving $8.9B from the CHIPS act in exchange for a 10% stake in the company"
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tyg13 ◴[22 Aug 25 21:52 UTC] No.44990301[source]▶
Depends on who you ask. Trump himself seems to think the US is getting 10% for free. I think that's a fair assessment given that these grants were already supposed to be paid out to Intel, without any kind of equity stake promised.

Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. Samsung, TSMC, Micron and others were granted similar funds without any kind of withholding or demands for equity from the federal government.

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1. simoncion ◴[22 Aug 25 22:43 UTC] No.44990819[source]▶
> Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant.

Sure, but Intel's new CEO is making a lot of noise that indicates that Intel is maybe not going to be able/willing to build some-to-many of the things the CHIPS money paid for.

Giving FedGov a 10% stake in the company [0] is better than taking the money back for nonperformance, wouldn't you say?

[0] Which -as I understand it- was the sort of thing that was done for those finance companies that were Too Big To Fail when all that fraud^W novel financial engineering eventually caught up to them.