The White House is negotiating the acquisition of about 10% of Intel’s shares by converting some or all of the company’s grants received under the US Chips and Science Act into equity capital, Bloomberg reports, citing sources familiar with the US president’s administration’s intentions.
The federal government’s potential investment is estimated at $10.5 billion based on Intel’s market value. It could make the US the company’s largest shareholder, the agency notes.
In total, Intel was to receive a total of $10.9 billion in grants for commercial and military chip production. A 10% stake would cost about $10.5 billion, based on the market value of the company’s shares.
According to Bloomberg sources, the exact size of the stake has not yet been determined, and the White House has not yet decided on the implementation of this plan. There are no official comments yet.