US President Donald Trump has announced that the US government will take a 10% stake in ailing chip maker Intel. This will be done via a conversion of previously granted subsidies to an equity stake, an unprecedented move by the White House.
The US is buying 433.3 million Intel shares at $20.47 each, totalling about $8.9 billion.
The funding comes from unused subsidies under the so-called CHIPS Act ($5.7 billion) and the Secure Enclave programme ($3.2 billion).
The government will have no direct control, with a few exceptions.
With this move, the US is following a pattern of strategic interventions in the technology sector, following previous deals with Nvidia, MP Materials and Nippon Steel.
Critics warn government interference could distort markets and pose risks to investors.
Emerce
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