The administration studies transforming public funds into minority participation without vote, in order to support the manufacture of semiconductors in national territory.
The government of USA analyzes the possibility of acquiring a participation in Intel as a counterpart of cash subsidies approved during the administration of Joe Bidenaccording to officials of the current administration. The measure seeks, according to those responsible, to ensure that public funds translate into capital, instead of limiting themselves to grant subsidies without financial return.
He Secretary of CommerceHoward Lutnick, said the idea is to obtain “capital in exchange for our money,” but clarified that it is not intended to exercise control over the company. “It is not governance, we are only turning what was a underground subsidy in capital for the Trump administration and for the American people,” he said in the chain CNBC.
Lutnick also explained that participation would be No right to votewhich would prevent the Government from intervening in the daily management of the company, just receiving financial benefits as consideration for approved subsidies.
For its part, the Treasury SecretaryScott Besent, emphasized that any investment would aim to help the binding chips manufacturer to stabilize its production in the United Stateswithout interfering with the company’s commercial decisions or forcing other companies to buy their semiconductors.
Given rumors that indicate that participation could reach a 10% of the companyBesent said it would be “a conversion of subsidies and perhaps increasing investment in Intel would help stabilize the company for chip production here in the United States.”
Operation and context details
The news arises after a report from Bloomberg Newswhich indicated that conversations are being held to take a 10% participation in Intel in exchange for U $ S7.9 billion in subsidies approved during the Biden administration. According to Lutnick, “we should obtain a participation in exchange for our money. We will obtain capital in exchange for that, instead of limiting ourselves to giving subsidies.”
This initiative reflects the growing concern of the US government for Strengthen the local semiconductor industry Faced with international competition and tensions with China, as well as to ensure that public investment has a tangible return.
Source: Ambito
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