President Donald Trump raised many eyebrows with his recent deal with Intel to accept on behalf of the U.S. a 10 percent equity stake in Intel, the publicly traded chip maker worth $108 billion.
According to an Aug. 22 statement by Intel, the investment was worth about $8.9 billion and was funded using monies from the $280 billion CHIPS Act already passed by Congress: “Under terms of the agreement, the United States government will make an $8.9 billion investment in Intel common stock, refl ecting the confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry. The government’s equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program.”
In other words, it was monies that Congress had already spent and obligated to the chipmaker. Now, Trump was asking what the U.S. got in return, with the answer being stock that has the potential to grow in value. In a statement on Truth Social on Aug. 25, Trump wrote, “I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA. Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long. I will also help those companies that make such lucrative deals with the United States... I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”
