The US government is considering the plan to buy shares in Intel in order to accelerate the end of the delayed semiconductor intricate in Ohio, informs BloombergIN citing sources who know this matter. If the plan is realized, it can become a key instrument to place Intel in a foundry game with appropriate process technologies and sufficient capacity. The idea apparently appeared after the meeting of President Donald Trump and the director of Intel, Lip-Bu Tan, at the beginning of this week.
Neither party has formally confirmed the plan, so take information with salt grain.
It was expected that the campus required investment of over $ 100 billion in order to fully realize its potential, although initial investments in the construction of the first phase of FAB, together with the media and office building, are much lower and can be in the range of tens of billions. According to people acquainted with the government’s own capital, the government, which the government could acquire, and the structure of the contract is still discussed Bloomberg.
Although President Donald Trump strongly criticized the arrangements and teachings of Joe Biden, who provided Chipcom with a subsidy, buying a participation in Intel would not be for the first time when Trump’s administration concluded a direct business partnership with a private company. Recent examples include “golden share” in the United States Steel Corp. to facilitate the sale of Japanese buyer. In addition, the Department of Defense recently acquired $ 400 million of the preferred capital position at MP Materials, the main Earth producer in America, and became its largest shareholder.
Apparently, officials are considering a model similar to the MP Materials Agreement, potentially connecting the government’s own capital with guaranteed purchasing contracts, loans, private investments and formal cooperation in the public sector. Such a package aims to provide investors with trust in the stability of the project, while ensuring that taxpayer funds are related to strategic results.
In the case of Intel, the time of a possible financial influx and the trust of the US government may be even more vital than the money themselves. On the one hand, the company must build the capacity of its own products and its external customers. On the other hand, he must gain trust, showing both competitive process technologies and financial stability. The assist of US administration will provide both, but Intel must ensure that its manufacturing processes are ready for third parties chip designers, and its abilities meet their requirements.
Although the agreement between the Intel and the US government has not yet been finalized (of course, if there is a contract), one of the results of conversations between Donald Trump and the Tan lip is a signal that the White House is certain Tan’s leadership, despite Trump’s earlier calls to give up fear of his relationship with Chinese business interest.
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