Beisente stated that the U.S. government's investment in Intel is an exchange of subsidies for equity, aimed at helping it stabilize
U.S. Treasury Secretary Janet Yellen stated that the investment in Intel aims to help stabilize the company, and the government hopes to gain support from the semiconductor manufacturer in exchange for equity. Yellen mentioned that no investment would force U.S. companies to purchase chips from Intel. Intel is facing an annual loss of $18.8 billion, marking its first loss since 1986
Reuters Washington, August 19 - U.S. Treasury Secretary Becerra stated on Tuesday that any investment in Intel (INTC.O) by the United States is aimed at helping the struggling chip manufacturer stabilize, while Commerce Secretary Lutnick indicated that the government hopes to acquire equity as a condition for providing support to the semiconductor manufacturer.
When asked about reports that the U.S. is considering acquiring a 10% stake in Intel, Becerra said on CNBC's "Squawk Box": "This move is to convert the subsidies the government gives to Intel into equity, and possibly increase investment in Intel to help the company stabilize and produce chips in the U.S."
Becerra did not disclose the scale and timing of the U.S. investment in Intel, but he stated that any investment would not aim to force U.S. companies to purchase chips from Intel.
Bloomberg News reported on Monday that the U.S. government is negotiating to acquire a 10% stake in Intel, and Becerra's remarks are the first official response to the report. The White House declined to comment on the report on Monday.
The day before Becerra's remarks, SoftBank Group (9984.T) agreed to invest $2 billion in Intel.
Lutnick stated in another CNBC program that the Biden administration has been "providing free subsidies" without returns, but President Trump wanted to change that.
"The Biden administration is essentially giving Intel money for free, giving TSMC money for free, all these companies are getting this funding for free, while President Trump has turned this practice into, 'We want to exchange equity for this money. If we're going to give you money, we want American taxpayers to get a piece of the pie.'"
Intel is currently in financial distress, with an annual loss of $18.8 billion in 2024, marking the first such loss since 1986, as the company faces multiple challenges
