Intel Corporation (NASDAQ:INTC) shares jumped higher on Friday after President Donald Trump announced the chipmaker had agreed to a deal for the U.S. to take a nearly 10% stake in the chipmaker. The news was confirmed in a statement after the close, ending weeks of speculation.
Intel shares closed up 5.5% following the news.
“They’ve agreed to do it and I think it’s a great deal for them,” Trump told reporters Friday afternoon at the White House.
Under the agreement, the U.S. is making an $8.9 billion investment in Intel common stock. The government’s equity stake will be financed through $5.7 billion in previously awarded but unpaid CHIPS and Science Act grants, along with $3.2 billion from the Secure Enclave program. Intel will continue meeting its Secure Enclave commitments and reiterated its pledge to supply trusted semiconductors to the U.S. Department of Defense. The $8.9 billion investment comes on top of $2.2 billion in CHIPS grants already received, bringing the total federal support to $11.1 billion.
The U.S. will receive 433.3 million primary shares of Intel common stock at a price of $20.47 per share, equivalent to a 9.9 percent stake in the company.
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” said Lip-Bu Tan, CEO of Intel.
"This is a great Deal for America and, also, a great Deal for INTEL," Trump said on Truth Social after the deal was formally announced.
Source :
https://www.investing.com/news/stock-market-news/trump-says-intel-agrees-to-us-taking-nearly-10-stake-in-struggling-chipmaker-4207407
