President Donald Trump announced on Friday that President Donald Trump on Friday had a 10 % stake in Pioneer, Silicon Valley in a deal that was completed just two weeks after filming the company’s CEO as an inappropriate conflicting leader for this position.
“The United States of America now owns and controls 10 % of Intel, a wonderful American company that has an incredible future,” Trump wrote in a post.
The United States government gets the arbitrator by transferring $ 11.1 billion in funds and pledges previously issued. Finally, the government gets 433.3 million shares of non-voting shares at a price of $ 20.47 each-at the closing price on Friday at $ 24.80. This proliferation means that the United States government has already a $ 1.9 billion profit on paper.
The wonderful junction of events makes the US government one of Intel’s largest shareholders at a time when Santa Clara, California, is working to abandon more than 20,000 workers as part of its last attempt to rebound from years of mistakes taken under a variety of executives.
The current CEO of Intel, the BU Tan lips, was not a little more than five months earlier this month, he seemed to be already on the ground that was already shaken after some legislators raised national security concerns about his previous investments in Chinese companies while it was legitimate capitalist. Trump climbed those concerns in a post on August 7 calling for the resignation of Tan.
But Trump retreated after Tan Malaysian, born in the United States, announced in a public letter to Intel staff and went to the White House to meet the president, which led to an agreement that the United States government is now betting that the company is on a return trail after losing more than $ 22 billion.
In a statement, Tan Trump applauded “the leadership of historical investments in a vital industry” and determined to reward his faith in Intel. Tan said: “We are grateful for the confidence that the president and the administration put in Intel, and we look forward to working to enhance American technology and lead manufacturing.”
The current Intel share price is slightly higher than the place where Tan was in March, and more than 60 % less than its peak reached 25 years ago when its chips were still dominating the personal computer boom before being undermined by switching to smartphones after a few years. The company’s market value is currently about $ 108 billion – a small part of the current Chip KingPin, NVIDIA, at a value of $ 4.3 trillion.
The share comes primarily by granting the US government to Intel through the Chips and Science Law that started during the era of President Joe Biden’s administration as a way to enhance more local computers to reduce dependence on external factories.
But the Trump administration, which regularly took the Biden administration policies, saw the chips as an unnecessary gift and now hoped to make a profit from the funding pledged in Intel.
“We believe that America should get the deal to take advantage of the deal,” said US Secretary of Commerce Howard Lootnick earlier this week. “It is clear that this is the right step.”
About $ 7.8 billion has been pledged to Intel under the incentive program, but only $ 2.2 billion has been funded so far. 3.2 billion dollars will come from government investment through money from another program called “Secure Enclave”.
Although the US government cannot vote with its shares and will not have a seat on the Intel Board of Directors, critics of the deal are seen as a disturbing polishing between the public and private sectors that can harm the technology industry in a variety of ways.
For example, more technology companies may feel pressure to purchase possible poor foil from Intel to Carrie for Trump at a time when he is already launching a trade war that threatens to influence their products in a possible scenario cited by Scott Lincum, Vice President of the Kato Institute.
“In general, it is a horrific step that will have real damage to American companies, the American technical leadership, and the American economy in general,” LINCICOME was published on Friday.
The 10 % stake can also intensify the pressure that is already facing Tan, especially if Trump begins to install on the price of Intel as he resorted to his tendency to celebrate his previous successes in business.
Nancy Tengler, CEO of Finance Manager Lavir Tinler for Investments, is among the investors who have abandoned Intel years ago because of all the challenges facing Intel.
“I do not see the benefit of American taxpayers, and I do not necessarily see the benefit to make the chips,” said Tengler while raising fears of Trump’s interference in Intel’s business.
“I don’t care how much of your businessman’s quality, I give him to the private sector and let people like me the critic and let the government reach the government’s actions,” Tinler said.
Despite the rare, it has never been an important contribution to a prominent company. One of the most prominent cases occurred during the great recession period in 2008 when the government achieved nearly $ 50 billion in General Motors for approximately 60 % stake in the auto industry company at a time when bankruptcy was about. The government ended with a loss of nearly $ 10 billion after it sold its shares at General Motors.
The US government’s share in Intel coincides with Trump pushing to bring production to the United States, which was a pivotal point in the trade war it was waging all over the world. By reducing the country’s dependence on the chips abroad, the president believes that the United States will be in a better position to maintain its technological progress in China in the race to create artificial intelligence.
Even before getting a 10 % stake in Intel, Trump was taking advantage of his strength to reprogram the operations of the main computer chips companies. Management requires NVIDIA and advanced advanced devices, two companies working on the crazy intelligence madness, to pay a 15 % commission on china china sales in exchange for export licenses.
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Liedtke mentioned from San Ramon, California.