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Intel Businesses

Intel Warns US Equity Stake Could Trigger 'Adverse Reactions' 153

Intel said Monday that converting $8.87 billion in federal chip subsidies into a 10% equity stake creates unprecedented complications and potential "adverse reactions" for a company deriving 76% of revenue internationally. The arrangement transforms Biden-era CHIPS Act grants into share purchases at $20.74 -- a discount to Friday's $24.80 close -- with the Department of Commerce receiving up to 433 million shares by Tuesday's expected closing.

Foreign governments may impose additional regulations on Intel due to US government ownership, the company warned in securities filings, while the precedent could discourage other nations from offering grants if they expect similar equity conversions. China alone represents 29% of Intel's revenue. The deal also restricts Intel's strategic flexibility, requiring government votes align with board recommendations except on matters affecting federal interests.
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Intel Warns US Equity Stake Could Trigger 'Adverse Reactions'

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  • So this is illegal (Score:5, Insightful)

    by rsilvergun ( 571051 ) on Monday August 25, 2025 @02:50PM (#65614812)
    Whatever else you think about it Trump does not have the right to unilaterally do this. The chips act does not give him that right.

    Earlier today he has once again hinted at becoming a dictator.

    It is genuinely frustrating how many Trump supporters still exist even here. I don't believe for a second any of them are so foolish that they believe Trump will be good for them economically. So that just leaves social issues.

    Is potentially being able to say the n word in public without losing your job worth giving up thousands of dollars a year if not more? The last BBB will cost consumers a minimum of $1,000 a year. And that's before we talk about all the other impacts

    I don't expect Trump supporters to change their minds. I figured out years ago that nothing changes their minds because they willingly consume propaganda for entertainment.

    I am mostly just bitching at this point. Screaming into the void as it were. There's a small chance Gavin newsom will save the country despite everything but besides that we are going to look like South Sudan in 10 years
    • by whoever57 ( 658626 ) on Monday August 25, 2025 @03:09PM (#65614860) Journal

      Is potentially being able to say the n word in public without losing your job worth giving up thousands of dollars a year if not more? The last BBB will cost consumers a minimum of $1,000 a year. And that's before we talk about all the other impacts

      "If you can convince the lowest white man he's better than the best colored man, he won't notice you're picking his pocket. Hell, give him somebody to look down on, and he'll empty his pockets for you."
                          --Lyndon B. Johnson

    • Whatever else you think about it Trump does not have the right to unilaterally do this. The chips act does not give him that right.

      This is correct.

      Earlier today he has once again hinted at becoming a dictator.

      No.

      He cannot force Intel to do this, however, every executive since the dawn of time has been able to make deals with US corporations in return for funding.
      Intel sold an equity stake in its business for 8 something billion dollars.

      Doing this doesn't make him a dictator. It does, however, make him a hypocrite- but that's hardly news for anyone.
      Fellating the image of Reagan while acquiring equity stakes in corporations... chef's kiss. But still not dictatorship behavior.

      • by SoCalChris ( 573049 ) on Monday August 25, 2025 @04:17PM (#65615056) Journal

        Doing this doesn't make him a dictator. It does, however, make him a hypocrite- but that's hardly news for anyone.

        Fellating the image of Reagan while acquiring equity stakes in corporations... chef's kiss. But still not dictatorship behavior.

        He quite literally said today, "A lot of people are saying maybe we'd like a dictator." He's floating that balloon, seeing how much push back he'll get for it.

        https://bsky.app/profile/atrup... [bsky.app]

        • He quite literally said today, "A lot of people are saying maybe we'd like a dictator." He's floating that balloon, seeing how much push back he'll get for it.

          There's no balloon to float.

          He's had a hard on for being El Presidente Vitalicio forever. He dreams of himself as the Great White Savior of White America.

          Fortunately for us, we're still a nation of laws, and he hasn't proven to test the legal pushback against questionably legal executive action more than any other particular executive.

          Look at the context of this.
          He's discussing deploying the Illinois National Guard to Chicago. These are people who are sworn to fucking kill his ass if he becomes a dom

          • "Fortunately for us, we're still a nation of laws"

            Hahahahahhahahahahah

          • Fortunately for us, we're still a nation of laws, and he hasn't proven to test the legal pushback against questionably legal executive action more than any other particular executive.

            Who will enforce any of this? He's placed loyal stooges in every level of government.

            • Who will enforce any of this? He's placed loyal stooges in every level of government.

              lol.
              Yes. The First President Ever To Do So!!!!

              It's his fucking Government. He's the fucking executive of it.
              You seem to be really upset by that. I'm not a fan personally, but the twat did win an election.

              • by PCM2 ( 4486 )

                This country's government is designed to have checks and balances on power. Congress isn't supposed to rubber-stamp every suggestion the President makes about spending -- they're the ones in charge of those decisions. Judges, particularly at the highest levels, aren't supposed to be partisan stooges; they're supposed to follow the law, but that doesn't seem to be what we have now. Nobody outside of the executive seems to want to exert their power, for fear of losing it. Apparently, it's enough to be able to

                • This country's government is designed to have checks and balances on power.

                  Correct, it does.

                  Congress isn't supposed to rubber-stamp every suggestion the President makes about spending

                  Uh, wrong.
                  Congress is supposed to do whatever the fuck the majority of it wants to do. Not what you want it to do.

                  Judges, particularly at the highest levels, aren't supposed to be partisan stooges

                  I'm not going to argue that all judges are perfect- and Trump definitely picked some really fucking shitty ones (but so did Obama) at the circuit level- but Trump's Supreme Court picks aren't that bad. Certainly not as bad as Bush's.
                  I have a feeling that you find any ruling that you disagree with to be "partisan".

                  Nobody outside of the executive seems to want to exert their power, for fear of losing it. Apparently, it's enough to be able to claim having it.

                  Congress largely agrees with the President. It's perfectly logic

          • by Pascoea ( 968200 )

            He's discussing deploying the Illinois National Guard to Chicago.

            Step 1: Deploy the guard under questionably moral and legal auspices. Step 2: Await the expected response of the Citizenry pushing back. Step 3: Escalate the antagonism until the first rock is thrown. Step 4: Fox "News" runs wall-to-wall 24-hour breathless coverage about "Chicago being out of control" demanding "leadership" do something about it. Step 5: President declares Martial Law. Step 6: The House and Senate continues to sit there with their thumbs in each other's asses. The Supreme Court shoves

            • Step 1: Deploy the guard under questionably moral and legal auspices.

              Not really.

              Step 2: Await the expected response of the Citizenry pushing back.

              Ya, I mean it's fucking martial law over in LA, haven't you heard?

              Step 3: Escalate the antagonism until the first rock is thrown.

              You've already gone so far down your rabbit hole that you've forgotten that we're talking about the Illinois National Guard policing Illinois citizens.

              Step 4: Fox "News" runs wall-to-wall 24-hour breathless coverage about "Chicago being out of control" demanding "leadership" do something about it.

              Probably true.

              Step 5: President declares Martial Law.

              He can in the case of insurrection, it's true. And it's legal.
              Who gets to define an insurrection? A great question. It should be noted that Washington called far less a rebellion, and mobilized troops against them.

              Step 6: The House and Senate continues to sit there with their thumbs in each other's asses.

              Probably. But that is the system working as intended, e

        • When will people marry his declarations and musings with the fact that he's marching Federally-controlled troops into cities to "fight crime". What the hell does everyone think is going to happen in next year's mid-terms when armed forces loyal specifically to Trump with little or no objection from Congress or the Supreme Court starting "guarantee" a "fair vote".

          Everything he and the Republicans have been working towards since the claims of Obama's ineligibility has been preparing for the moment when they m

          • I promise you that California, Illinois, and DC Army National Guards are not loyal to Trump.

            You need some edibles, because your brain is flat out poisoned with conspiratorial horseshit.
            • Are you ignoring the fact that 19 states are welcoming NG detachments? Two objecting states out of 50 can't really fill anyone with warm, safe fuzzies. We're fucked: you just haven't put it together, yet.
              • What in the fucking hell do you think that has to do with anything?
                This on top of talking about putting people in body bags?

                Ok- you're clearly mentally unstable.
                Someone really ought to get you some help.
              • Why didn't those states activate their own national guards?

    • It is genuinely frustrating how many Trump supporters still exist even here. I don't believe for a second any of them are so foolish that they believe Trump will be good for them economically. So that just leaves social issues.

      Some of it might be culture war issues, but you're overlooking something far more important - a lot of these folks see their political alignment as part of their identity. If thrown into question because they finally admit to themselves that the emperor is naked, now where do they fall?

      In our two-party system, being an independent means aligning yourself with literal losers. So, the only other realistic option is the Democrats, and you don't have to do much lurking in conservative circles to discover what

    • I don't expect Trump supporters to change their minds. I figured out years ago that nothing changes their minds because they willingly consume propaganda for entertainment.

      It's not like you will either. Every time anybody conclusively proves you wrong on any given thing, all you ever do is double down. Life is really only as good or as crappy as you think it is, and you won't be satisfied until everybody is as clinically depressed as you are, namely because you've got it in your head that your life can't improve until every perceived social ill you have is turn down and remade in your image. But every time somebody has succeeded in exactly what you're trying to do, the end re

  • by dicobalt ( 1536225 ) on Monday August 25, 2025 @02:55PM (#65614824)
    but don't nationalize healthcare!
  • Trump take factory (Score:5, Interesting)

    by jacks smirking reven ( 909048 ) on Monday August 25, 2025 @03:08PM (#65614856)

    The whole thing with the subsidy in the CHIPS act was that Intel was going to be building fabs and making more shit over here. Now we just get stocks and no manufacturing.

    That's what this was about right MAGA? Jobs and manufacturing? It's not just political power and corruption right? Will you ever stop living in fear of the potential embarrassment of having to admit DJT is not a good person and not a good President?

    • by Rinnon ( 1474161 )

      Will you ever stop living in fear of the potential embarrassment of having to admit DJT is not a good person and not a good President?

      I continue to wonder where precisely the line is for some of these folks. I do not consider it an embarrassment to use newly available information to determine that your previous position was mistaken... but if someone asks you what it would take to change your mind, and the answer is "nothing," THAT is an embarrassment and the truest sign that an un-thinking follower.

    • Most likely never as long as he keeps "hurting the people he needs to be hurting".

  • The CHIPS Act gave Intel a bunch of money, but that money turned out to not be a grant but a stock purchase instead. Intel does get more money to invest, but it's not clear that Intel's problem was a lack of capital. It's more likely a lack of competence.

    So, the 10% equity was not purchased on the open market but was newly created shares. The stock has now been diluted in a major way. Unless that $11 billion is expected to result in 10% growth, the stock price should drop around 10%.

    • Was it newly created shares though? Haven't seen a quote on that yet. With all of the buybacks everyone has been doing for years now, Intel could easily sell the 10% out of their own existing stock.

      Competence, sure, that they have missing indeed. They're a gen behind in tech and are now manufacturing at TSMC. 13 and 14 series high end was basically recall material. Theoretically they are trying to now skip a gen and come out on top again, but I have my doubts.

      Their foundry business dreams have also failed m

    • by AvitarX ( 172628 )

      They diluted the company shares at a discount of the stock price.

      All things remaining the same selling the stock at a discount would reduce the share value.

  • Commies (Score:5, Insightful)

    by abulafia ( 7826 ) on Monday August 25, 2025 @03:29PM (#65614936)
    The "free speech and free markets" brigade sure has been quiet lately.

    I guess they're too busy crossing out parts of their pocket-constitutions.

    • The "free speech and free markets" brigade sure has been quiet lately.

      I think a lot of us are just waiting for MAGAts to realize that the corrupt, fascist, populist regime they've chosen is really not what they wanted. They won't listen to us until they come to that realization on their own, and until they do, the GOP is just going to continue its slavish devotion to Trump.

      I guess they're too busy crossing out parts of their pocket-constitutions.

      Uh, no. I, for one, am writing a lot of emails and letters to my (GOP) representatives, trying to remind them that the Constitution they've sworn to uphold really matters and that they shouldn't just let

      • by abulafia ( 7826 )
        I do hope you and the four others can hold out.

        More seriously, I know there are sincere, principled folks well to the right of me, currently disaffected by this madness, too. I do hope we can find enough common ground to get through this with something like a free country to disagree about later.

        I was mostly referring to a large number of folks who used to parrot such things when convenient, only to shuck it when they think they get to be the ones piloting the black helicopters. It is a genuinely sad/fun

        • More seriously, I know there are sincere, principled folks well to the right of me, currently disaffected by this madness, too.

          I may or may not be to the right of you. I'm a classical liberal, what some call a neoliberal, and I usually describe myself as a pragmatic libertarian.

          I do hope we can find enough common ground to get through this with something like a free country to disagree about later.

          Indeed.

          I was mostly referring to a large number of folks who used to parrot such things when convenient, only to shuck it when they think they get to be the ones piloting the black helicopters. It is a genuinely sad/funny thing, quoting a family member back to them a few years later.

          And yet they never seem to see the humor in it!

  • "If the US government stops throwing free money at us and start expecting something in return, other governments might stop throwing free money at us too!"

  • TikTok anyone (Score:4, Interesting)

    by sit1963nz ( 934837 ) on Monday August 25, 2025 @04:27PM (#65615084)
    So...can Intel be trusted anymore ?

    How can anyone know that the US government has not put in "back doors" for their benefit
    What's going to be the new catch phrase "Intel intel inside"

    AMD could do well out of this, along with ARM and other CPUs
  • was find a way to give a billion or so of the CHIPS money to Trump ... for instance by "investing" in Trump coin. They did not give Carrot Man his carrot, so now they get the stick.
  • by dskoll ( 99328 ) on Monday August 25, 2025 @05:42PM (#65615320) Homepage

    Governments taking over private enterprises... huh. I did not have "GOP becomes Communist" on my bingo card 15 years ago.

  • ... requiring government votes ...

    Wasn't the original argument that government wouldn't have any power over the directors (besides the usual DoJ and Executive Orders)?

    Now, Trump (Yes, Trump not the government: That's the point of the Trump presidency and why Project 2025 can easily destroy the real government.) gets control of Intel.

    I thought Trump would steal the share certificates and run but this means he wants to sell-off Intel and force share buy-backs: A major manipulation of the market to benefit himself.

  • And this is a minority stake, in a company that is not exactly performing well, at least by market standards. Things were much more severe for several other very large US auto manufacturers in 2008, which the Federal Government actually owned virtually outright.

    Of course, the amusing irony is that of conservatives using a state owned company as a strategy.

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