Revealed at FIFA North and Central America World Cup Group Draw Event
"We do a lot of equity acquisition deals"
Also disclosed meeting with Intel CEO
"Gave up $10 billion to keep his position"
Attention on impact for Samsung and others
On August 22 (local time), U.S. President Donald Trump announced that the American semiconductor company Intel had agreed to sell a 10% stake to the U.S. government in exchange for subsidies under the country’s semiconductor law. He also stated that he plans to expand similar "deals."
At a White House event announcing the FIFA North and Central America World Cup group draw schedule, President Trump said that Intel had agreed to transfer a 10% stake to the U.S. government. "We do a lot of deals like that," he said, adding, "I will do more of those deals."
President Trump also mentioned his recent meeting with Intel CEO Pat Gelsinger, saying, "He wanted to keep his position and decided to give up $10 billion (approximately 14 trillion won, the estimated value of a 10% stake in Intel) for the United States."
As a result, there is growing industry attention on whether the Trump administration will seek to acquire stakes in companies such as Samsung Electronics, which have received subsidies for semiconductor facility investments in the U.S. Previously, U.S. Secretary of Commerce Howard Lutnick stated on August 19 that the government was attempting to secure a stake in Intel using subsidies under the semiconductor law.
Following Secretary Lutnick’s remarks, there has been speculation that the Trump administration may seek to acquire stakes not only in the American company Intel, but also in foreign companies such as TSMC and Samsung Electronics that have received subsidies under the U.S. semiconductor law.
However, the Wall Street Journal (WSJ) reported on August 21, citing administration officials, that while the Trump administration is considering acquiring stakes in companies receiving subsidies under the semiconductor law, it does not plan to pursue equity stakes in large companies that are increasing their investments in the United States.
In December of last year, during the previous Joe Biden administration, the U.S. Department of Commerce signed contracts to provide subsidies under the semiconductor law, including $6.6 billion (about 9.2 trillion won) to TSMC, $6.2 billion (about 8.6 trillion won) to Micron, and $4.75 billion (6.6 trillion won) to Samsung Electronics. The amount of subsidies was determined by the scale of the U.S. investment projects promised by these companies, and the subsidies are being disbursed sequentially as the projects are implemented.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
