Intel admits US Government share deal could have a major effect on international sales

Date:
Wed, 27 Aug 2025 16:01:00 +0000

Description:
Intel will hand over 433 million shares to the US Government, but its also worried about Trumps influence overseas.

FULL STORY ======================================================================The US Government is set to acquire 10% of Intel in exchange for 433 million shares But Intel is worried about Trumps substantial additional powers on foreign business Trump praised the deal for making the US richer, and for creating more jobs

The upcoming US Government ownership deal could have knock-on effects on how Intel deals with foreign customers and governments in the future, which could be further amplified by Trumps unpredictable trade and tariff policies, the company has admitted.

The US Government is set to acquire a 10% stake in Intel through a mix of unpaid CHIPS Act grants and funding in a deal valued at around $8.9 billion
in total.

In exchange, Intel will hand over 433 million shares to the government, worth between $10-11 billion. Intel could be affected by its US ownership

The tricky part comes in the form of foreign business, because around 76% of Intels fiscal 2024 revenue came from abroad, with popular markets including China, Singapore and Taiwan.

Being part-owned by the US Government means Intel could be exposed to foreign subsidy laws, extra regulations, lawsuits, political scrutiny and competitor pushback that could seriously hamper its foreign sales.

Having the US Government as a significant stockholder of the Company could subject the Company to additional regulations, obligations or restrictions, such as foreign subsidy laws or otherwise, in other countries, Intel wrote in a SEC filing .

Intel also noted that the US Governments interests may not reflect those of its existing shareholders, and that its substantial additional powers could prevent it from pursuing potential future strategic transactions at the benefit of shareholders.

President Trump welcomed the deal, claiming it made the US $11 billion at
zero cost. I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA, he wrote on Truth social media.

The post goes on to explain how Intels stock price could go up while the US would become RICHER, AND RICHER. Trump also noted that the deal would
generate more jobs for America!!!

It is difficult to foresee all the potential consequences, Intel concluded.

Intels latest quarterly revenue remained flat year-over-year at $12.9
billion, under the leadership of new CEO Lip-Bu Tan. You might also like It's not all bad news for Intel - AWS just snapped up a load of custom Xeon chips for extra cloud power Access powerful chips with the best cloud computing services These are the best processors from both Intel and its rivals



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Link to news story: https://www.techradar.com/pro/intel-admits-us-government-share-deal-could-have -a-major-effect-on-international-sales


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