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Intel stock spikes after report of possible u.s. government stake
Are we approaching China’s model on private companies, state-run companies?
The Chip Act was passed in 2022 to encourage domestic investment on semiconductor manufacturing. Results is mixed after 3 years that shows re-sourcing manufacturing is not easy, especially with the complex supply chain involved. It will take lots of investment to turn Intel foundry around and to catch up to the leading foundries. Minor stakes, in my opinion, are too little to move the needle.
@Sven said: "Are we approaching China’s model on private companies, state-run companies?"
I was wondering the same thing. You have to realize that Trump doesn't regard himself as the president of a democracy. He treats the United States of America as if the entire country is nothing more than his private company, to run and rule any damned way that he feels like. (Subject to change without notice, of course.) Since it's his company, he makes the rules. If there are laws limiting his ability to do that, he has a large number of assistants to help him evade or ignore those restrictions.
With that mindset he regards the heads of all other countries as being similar "executives", and therefore "competitors". This explains his appreciation of other "executives" who run their countries in a similar manner.
Viewed from this perspective there's really no contradiction between his animus towards China as a competitor, and his admiration for certain aspects of Xi Jinping's leadership.
The same thing applies to Russia, North Korea, Saudi Arabia, and any other country with a leader of similar mindset.
It is too little and too late to catch up to TSMC. Intel failed to recognize new markets such as chipsets for cell phones, in particularly smart phones. Instead they focus on matured business such as PC and servers, which are rapidly commoditized.
State-run companies are subjected to corruption and inefficiency as shown in China’s construction industry. A number of concrete ghost cities were built so to keep up with the employment rates. Some of these companies have been delisted in their stock exchanges.
A wealth of investment information on emerging markets are available in the Seafarer fund website. Highly recommended.
WIKI: ...(B)ig business developed an increasingly close partnership with the Italian Fascist and German Nazi governments after they took power. Business leaders supported the government's political and military goals. In exchange, the government pursued economic policies that maximized the profits of its business allies...
I don’t fully understand this venture by our government. Media has been reporting it being under consideration for several days. So not a surprise. It does recall Japan at the depths of their decades long recession. The government began buying stocks to try and bolster their stock market. But the situation here is hardly comparable - at least not yet.
Commerce Secretary Howard Lutnick said Tuesday that Intel must give the U.S. government an equity stake in the company in return for CHIPS Act funds.
“We should get an equity stake for our money,” Lutnick said on CNBC’s “Squawk on the Street.” “So we’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.
Well, sounds like an "innovative" govt scam. Like, uh, hey...those grants you were promised? Well, we own (a part) of you now if you accept them and we make the rules up as we go along. Capish?
Maybe next they expand into some Waste disposal services, Cement mixing, a few casinos, some Gaza hotels. More crypto. Lots of crypto. And lots of tariffs and lawsuits to keep em all honest.
These shares are non-voting share, but at a discount from the publicly traded shares.
The U.S. government is getting the stake through the conversion of $11.1 billion in previously issued funds and pledges. All told, the government is getting 433.3 million shares of non-voting stock priced at $20.47 apiece — a discount from Friday’s closing price at $24.80. That spread means the U.S. government already has a gain of $1.9 billion, on paper.
My question is, does these newly issued shares dilute the market values of all Intel shares?
"What’s also worth mentioning is that INTC’s total number of shares outstanding will increase by roughly 12% due to the government’s equity stake, which means significant dilution for existing shareholders."
there is an inspiring list of innovations spouted by trump to industries of all flavors, him being a unique expert in all. my take is that AMD is more than happy for intel to be forced to act on strategic advice from trump and his anti-STEM MAGA morons.
m.leder, noted forensic analyst on SEC postings, came from behind her paywall to comment on intel's CYA statement regarding the coercion. some clips....
...a lot to unpack in this risk factor and any number of parties that could potentially sue. But I love the nuanced language of “given the scarcity of recent US precedents”. Really? The government doesn’t take 10% stakes in major American companies that employ over 100,000 people with virtually zero planning based on some tweet... I'm shocked, shocked! Based on today's close, it seems clear as if the promised cash infusion did nothing to boost Intel’s stock price, so it will be interesting to see what impact this has over the next few months and years. I also thought the risk factor stating that there’s no requirement for the $8.9 billion infusion to be made by a certain date, although the 94-page filing spells out a closing date of Aug. 26 was worth noting. As too was the risk factor that the tax, accounting and financial impacts are uncertain and being evaluated! linkedin.com
in short, intel is saying they have no idea, and by this disclosure take no liability regarding impact on legalities, capital deployment, taxes, and accounting. SHAREHOLDERS, THANK YOU FOR YOUR ATTENTION TO THIS MATTER.
Comments
The Chip Act was passed in 2022 to encourage domestic investment on semiconductor manufacturing. Results is mixed after 3 years that shows re-sourcing manufacturing is not easy, especially with the complex supply chain involved. It will take lots of investment to turn Intel foundry around and to catch up to the leading foundries. Minor stakes, in my opinion, are too little to move the needle.
I was wondering the same thing. You have to realize that Trump doesn't regard himself as the president of a democracy. He treats the United States of America as if the entire country is nothing more than his private company, to run and rule any damned way that he feels like. (Subject to change without notice, of course.) Since it's his company, he makes the rules. If there are laws limiting his ability to do that, he has a large number of assistants to help him evade or ignore those restrictions.
With that mindset he regards the heads of all other countries as being similar "executives", and therefore "competitors". This explains his appreciation of other "executives" who run their countries in a similar manner.
Viewed from this perspective there's really no contradiction between his animus towards China as a competitor, and his admiration for certain aspects of Xi Jinping's leadership.
The same thing applies to Russia, North Korea, Saudi Arabia, and any other country with a leader of similar mindset.
https://msn.com/en-us/money/companies/intel-shares-rise-on-report-of-possible-us-government-stake/ar-AA1KAypH
It is too little and too late to catch up to TSMC. Intel failed to recognize new markets such as chipsets for cell phones, in particularly smart phones. Instead they focus on matured business such as PC and servers, which are rapidly commoditized.
State-run companies are subjected to corruption and inefficiency as shown in China’s construction industry. A number of concrete ghost cities were built so to keep up with the employment rates. Some of these companies have been delisted in their stock exchanges.
A wealth of investment information on emerging markets are available in the Seafarer fund website. Highly recommended.
Sound way too familiar?
https://forbes.com/sites/ywang/2025/08/18/softbank-to-make-2-billion-investment-in-troubled-us-chipmaker-intel/
Well, sounds like an "innovative" govt scam. Like, uh, hey...those grants you were promised? Well, we own (a part) of you now if you accept them and we make the rules up as we go along. Capish?
https://www.cnbc.com/2025/08/22/intel-goverment-equity-stake.html
Maybe next they expand into some Waste disposal services, Cement mixing, a few casinos, some Gaza hotels. More crypto. Lots of crypto. And lots of tariffs and lawsuits to keep em all honest.
What a swell operation.
https://pbs.org/newshour/politics/trump-says-intel-has-agreed-to-give-u-s-a-stake-in-its-company-heres-what-to-know
These shares are non-voting share, but at a discount from the publicly traded shares. My question is, does these newly issued shares dilute the market values of all Intel shares?
https://finance.yahoo.com/news/government-taking-10-stake-intel-181542633.html
my take is that AMD is more than happy for intel to be forced to act on strategic advice from trump and his anti-STEM MAGA morons.
m.leder, noted forensic analyst on SEC postings, came from behind her paywall to comment on intel's CYA statement regarding the coercion. some clips....
...a lot to unpack in this risk factor and any number of parties that could potentially sue. But I love the nuanced language of “given the scarcity of recent US precedents”.
Really? The government doesn’t take 10% stakes in major American companies that employ over 100,000 people with virtually zero planning based on some tweet... I'm shocked, shocked! Based on today's close, it seems clear as if the promised cash infusion did nothing to boost Intel’s stock price, so it will be interesting to see what impact this has over the next few months and years.
I also thought the risk factor stating that there’s no requirement for the $8.9 billion infusion to be made by a certain date, although the 94-page filing spells out a closing date of Aug. 26 was worth noting. As too was the risk factor that the tax, accounting and financial impacts are uncertain and being evaluated!
linkedin.com
in short, intel is saying they have no idea, and by this disclosure take no liability regarding impact on legalities, capital deployment, taxes, and accounting.
SHAREHOLDERS, THANK YOU FOR YOUR ATTENTION TO THIS MATTER.
Also Lutnick mentioned the government will take stakes on defense companies.
How is this Intel case different from Warren Buffet’s investment on Bank of America in 2008?
https://nbcnews.com/id/wbna44271321