- Intel CFO says that the company has just received $ 5.7 billion from the US government
- Trump obtained a 10% stake in Intel in exchange for financial support
- The agreement aims to keep Intel in the property of its foundry
Intel financial director David Zinsner said the company had received $ 5.7 billion from the US government this week in the context of an agreement that Intel will be profitable and will make billions in the United States.
The agreement implies that Intel giving 10% participation in the US government, negotiated by Trump, which also obtained a mandate of 5% if the property of Intel of its foundry falls below 51%.
However, despite the signs that the agreement is certainly underway, the press secretary of the White House, Karoline Leavitt, said that she was still finalized by the Ministry of Commerce.
Intel government agreement seems to go ahead
For the future, Zinsner suggested that Intel can seek external investments for its foundry unit in order to attract strategic investors on purely financial agreements, but this could be in years.
Trump’s participation in Intel aims to encourage the company to maintain control of its foundry business, stimulate the American economy and support jobs.
“I do not think there is a high probability that we would take our participation below 50%,” said Zinsner (via PK Press Club). “So, in the end, I would expect that (the mandate) expires without value.”
However, Intel is not so sure of the effects that Trump’s agreement could have on the company, citing potential complications by obtaining international agreements. Intel has also noted that the interests of the White House can differ from its own.
Despite the magnitude of the agreement, Intel should still dismiss thousands of workers. Since he took office just months ago, the new CEO LIP-BU Tan has promised to write staff at around 75,000 to overthrow the company.
Last month, Intel recorded a quarterly turnover which was flat from one year to the next – at 12.9 billion dollars. Intel shares have increased by 0.2% after the announcement of this week, but despite an increase of 21.58% this year to date, they have always dropped by 50.85% in the past five years.
