SoftBank to Invest $2 Billion in Intel as Trump Admin. Reportedly Considers Acquiring 10% Stake in Chipmaker

Wait 5 sec.

TMTPOST -- Intel Corporation will receive billions of dollars of investment to help the beleagured U.S. chipmaker revive.Credit:IntelIntel and SoftBank Group Corp. on Monday announced  they had singed a definitive securities purchase agreement, under which the Japanese conglomerate will make a $2 billion investment in Intel common stock. SoftBank will pay $23 per share of Intel common stock, and the transaction is subject to customary closing conditions, according to a statement.Intel and SoftBank suggested in the statement that the investment marks part of their efforts to deepen their commitment to investing in advanced technology and semiconductor innovation in the United States. Intel stock rallied as much as around 6% in after hours following the announcement.“Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” said SoftBank Chairman and CEO Masayoshi Son. Intel CEO Lip-Bu Tan said he and Son had “worked closely together for decades,  and I appreciate the confidence he has placed in Intel with this investment.”Softbank’s investment came as the U.S. government was said to weighing direct capital injection to bail Intel out. The Trump administration last Thursday was reported to be in talks with Intel to have the U.S. government take a stake in the company, and the deal, if reached, would help re-boost Intel’s long-delayed  factory hub in Ohio.Neither Intel nor the Trump administration confirmed these reports. "We look forward to continuing our work with the Trump administration to advance these shared priorities, but we are not going to comment on rumors or speculation," an Intel representative said in a statement on August 14. The spokesperson repeated the pledge Intel made week earlier, saying the company is “deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership.” “Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration,” White House spokesman Kush Desai said in a statement the same day.The Trump administration is considering using at least part of funds from the CHIPS and Science Act of 2022 (CHIPS Act) for Intel in exchange for a stake in the company, Bloomberg reported on Friday.  It was said that the government’s talks were still in early stages and other options could be under consideration.The report indicated possible options include converting some or all of Intel’s existing CHIPS Act grants into equity, allocating new funding from a broader pool, and combining Chips Act money with other financing streams. It noted that the source of funding remains in discussion, hinting the administration may eventually decide to take advantage of other sources. Bloomberg cited sources on Monday that the Trump administration is in talks to take a roughly 10% stake in Intel in a deal that would make the U.S. the largest shareholder in the chipmaker. The federal government is mulling an investment that would convert some or all of the grants allocated to the company under the CHIPS Act, per the report.Intel was already deemed as the biggest beneficiary of the federal incentives. The company was awarded $7.9 billion in grants under the CHIPS Actfor commercial semiconductor manufacturing and as much as an additional $3 billion for the Pentagon’s Secure Enclave program. The combined $10.9 billion in grants would equate to a little over 10% of Intel’s $103.8 billion market value as of Monday. But Bloomberg learned from sources the White House has not yet decided whether to go ahead with the plan.U.S. Commerce Secretary Howard Lutnick is searching for ways to improve the return on investment from the CHIPs Act funds granted to companies like Intel, and he believes converting those funds into an equity stake in Intel might be the best way for the government to bolster the company while protecting taxpayer interests, the Wall Street Journal quoted one of its sources on Monday. 更多精彩内容,关注钛媒体微信号(ID:taimeiti),或者下载钛媒体App