A "Big Deal" for Both the US and Intel, Trump Says on Social Media
US Government Overtakes BlackRock to Become Largest Shareholder
"Intel Is Fundamental to America's Future... Make America Great Again"
Trump Highlights Deal at World Cup Event, Hints at More Moves
"More Deals Like the Intel Case to Come"
Attention on Potential Stake Acquisitions in Samsung, Micron, and TSMC
On August 22 (local time), US President Donald Trump officially announced that the US government had acquired a 10% stake in the US semiconductor company Intel, stating that the government now "fully owns and controls" the company.
President Trump wrote on the social networking service Truth Social, "It is a great honor to report that the United States now fully owns and controls 10% of Intel, a great American company with an even more amazing future."
As a result, the US government has become the largest shareholder of Intel. Previously, the largest shareholder was BlackRock, a US asset management firm, which held an 8.92% stake. However, this position has now been overtaken by the US government, which has secured a double-digit stake.
President Trump stated, "I negotiated this deal with Intel CEO Lip-Bu Tan," and added, "The United States (the US government) did not pay anything for these shares, and the current value of the stock is about $11 billion (approximately 15 trillion won)."
President Trump continued, "This is a big deal for America and a big deal for Intel." He also wrote, "What Intel does-producing cutting-edge semiconductors and integrated circuits-is fundamental to our country's future. Let's make America great again."
It is reported that the US government received the 10% stake in Intel as a quid pro quo for the subsidies promised to Intel under the CHIPS Act. When Intel's promised investment plan in the US became uncertain due to the company's management difficulties, the US government stepped in and demanded a stake as a safeguard in case the promise was not fulfilled, and Intel accepted this condition.
Previously, in November last year under the Biden administration, the US Department of Commerce announced that it would provide up to $7.865 billion (about 10.9 trillion won) in direct funding to Intel to develop advanced semiconductor capabilities and create tens of thousands of jobs. Including this, Intel is set to receive a total of $10.9 billion in government subsidies.
Earlier, on August 19, US Secretary of Commerce Howard Lutnick stated that the government was attempting to secure a stake in Intel using subsidies under the CHIPS Act. According to The New York Times (NYT), the Trump administration and Intel finalized the basic framework of the agreement on August 20, the day after Secretary Lutnick's remarks. At that time, Secretary Lutnick and Intel CFO David Zinsner reportedly agreed on the outline of the contract.
The Intel board approved the plan on the same day, and on August 21, Secretary Lutnick and CEO Tan reportedly agreed on the specific terms of the contract.
In a statement officially announcing the contract, CEO Tan expressed, "I am grateful for the trust the President and the government have shown in Intel," and added, "We look forward to advancing US leadership in technology and manufacturing."
Secretary Lutnick also stated on social media platform X, "This historic agreement will strengthen US leadership in the semiconductor sector," and added, "It will help us grow the economy together and maintain America's technological edge."
President Trump also mentioned the acquisition of the Intel stake during an event at the White House announcing the FIFA CONCACAF World Cup group draw schedule. He said, "We do a lot of deals like this. I will do more of them," leaving open the possibility of acquiring stakes in other companies that receive subsidies, in addition to Intel.
As a result, the industry is closely watching how this will affect companies such as Samsung Electronics, which receive subsidies for semiconductor facility investments in the US.
However, there are also views that it remains to be seen whether President Trump will attempt to acquire stakes in foreign companies, beyond US firms like Intel. The Wall Street Journal (WSJ) reported on August 21, citing administration officials, that while the Trump administration is considering securing stakes in companies receiving subsidies under the CHIPS Act, it does not plan to pursue stake acquisitions in large companies that are increasing their investments in the US.
In December last year, during the previous Joe Biden administration, the US Department of Commerce signed contracts to provide subsidies under the CHIPS Act, 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 (about 6.6 trillion won) to Samsung Electronics.
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