The United States made an investment of $ 8.9 billion by taking about 10 percent passive shares from Intel. This step was one of the direct intervention moves of the Washington administration, trying to draw production power into the borders of the country.
Intel said in a statement, the US government has been reported to have a passive stock period for $ 8.9 billion in the scope of the agreement reached. This investment came after Softbank’s recently announced $ 2 billion support. The purchase transaction does not have the right to vote or management; it only means capital participation. On the other hand, a partnership of a government that centralized technology policies such as the USA in this way brought along a large number of new discussions throughout the sector. In addition, it is stated that this investment should be read not only on a company basis, but as part of a wider industrial transformation.
The source of the investment consists of 3.2 billion dollars of funds provided through the program called Secure Enclave with a support of $ 5.7 billion announced in 2022 within the scope of CHIPS and Science Act. Thus, a total of $ 11.1 billion of public support was transformed directly into Intel shares. This method involves the fact that they go beyond classic incentive systems and obtain a direct share of financial equivalent in companies. Nevertheless, whether the model in question will become permanent, it will be clarified according to future practices. However, for the US, which wants to get away from Chinese -based production, this step has created a certain orientation through Intel.
Intel CEO Lip-This Tan, after the investment announcement, said in a statement, expressed their satisfaction with the ongoing collaborations with Softbank. In the same statement, the negotiations with the US government have been going on for a long time and this agreement is a concrete sign of confidence. Meanwhile, Softbank CEO Masayoshi lastly evaluated the investment in Intel as a part of the vision of expanding semiconductor production in the United States. The last emphasized that Intel has been operating in the semiconductor field for more than 50 years. Both explanations reveal that companies are looking forward to public -supported production investments.
The government’s direct company shares are evaluated as the result of the search for a new balance in public-private sector relations
In addition, the passive quality of the investment has caused a partnership at the level of ownership, although it does not create a administrative intervention. This was met with criticism among the supporters of the market economy. But some circles argue that the state’s acting as a direct investor, not only financing, but also as a direct investor can benefit, especially in critical sectors. In any case, the use of public capital in private companies in this way may be a harbinger of possible cooperations that can be done with other technology giants in the near future. However, the Intel example is an important first step in terms of seeing the limits and effects of the application.
Intel is one of the major technology companies that have announced successively damage in the last three years. Since 2022, the total damage has exceeded $ 22 billion. While the share value fell steadily in this process, investor confidence was seriously shaken. In this context, the government’s investment emerged as a form of intervention to support not only the production infrastructure, but also the financial structure of the company. Whether this intervention is temporary will be shaped by the follow -up of the public and the market.
In the light of all these developments, the CIPS law and the form of implementation of similar public -supported programs are transformed. In the past, resources provided on tax cuts or incentives can now be used directly in exchange for company shares. The areas where this new model will be adopted will be largely determined according to the US aims to reshape technology production. However, the fact that public funds are oriented to technology companies on this scale reveals a limit that needs to be redefined between public control and private property. This first step with Intel prepares the ground for the future discussions in the future.