Heads up, tech fam: the U.S. government is in talks to convert some of Intel’s Chips Act grants into equity, making them a 10% shareholder in the chip giant 💰🇺🇸.
Here’s the tea ☕: Intel was slated to get $10.9 billion under the Chips Act—a U.S. law that pumps cash into boosting domestic chip-making for commercial and military use. That’s roughly enough to score a $10 billion, 10% stake in Intel.
For us in South and Southeast Asia, chips power everything from the latest smartphones we queue for in Bangalore to the gaming rigs lighting up Manila’s e-sports scene 🎮✨.
Why it matters: Intel needs a lifeline to revive its foundry business (it’s the part that builds chips for others), which has been losing money. Federal backing could ease the pressure, but Intel still faces a tough roadmap and needs more clients for its newest fabs (factories).
“The fact that the U.S. government is stepping in to save a blue-chip American company likely means that Intel’s competitive position was much worse than what anybody feared,” says David Wagner, head of equity at Aptus Capital Advisors.
This isn’t totally new territory—during the 2007–09 financial crisis, the U.S. took a stake in General Motors and later exited in 2013. Now, with chip shortages still looming, a government–industry partnership could set a fresh precedent.
What’s next? Will this spark Intel’s comeback and shake up the global chip game? Or will it be a one-off experiment in state-industry ties? Stay tuned, chip fans 🚀.
Reference(s):
U.S. government in talks to take 10% of Intel, Bloomberg reports
cgtn.com
