- Intel CFO says that the company has just received $ 5.7 billion from the United States government
- Trump obtained a 10% participation in Intel in exchange for financial support
- The agreement aims to keep Intel in the property of its foundry
Intel’s financial director David Zinsner said the company received $ 5.7 billion from the United States government earlier this week as part of an agreement that Trump expects Intel to make profitable and return billions to the United States.
The agreement implies that Intel gave a 10% participation to the United States government, negotiated by Trump, who also obtained an arrest warrant of 5% if Intel’s property of its foundry falls below 51%.
However, despite the signs that the agreement is certainly underway, the White House press secretary, Karoline Leavitt, said it is still being completed by the Commerce Department.
Intel’s US government agreement seems to be ahead
Looking towards the future, Zinsner suggested that Intel can seek an external investment for its foundry unit to attract strategic investors on purely financial agreements, but this could be years away.
Trump’s participation in Intel is aimed at encouraging the company to retain control of its foundry business, boost the economy of the United States and support jobs.
“I don’t think there is a high probability that we take our participation below 50%,” said Zinsner (through PakGazette). “Then, ultimately, I would expect (the order) expire without value.”
However, Intel is not so sure of the effects that Trump’s agreement could have on the company, citing possible complications with obtaining international agreements. Intel also pointed out that the interests of the White House may differ from yours.
Despite the scale of the agreement, Intel is still ready to fire thousands of workers. Since he assumed the position only a few months ago, the new CEO Lip-Bu has promised to cut the staff of around 75,000 to change the company.
Last month, Intel recorded quarterly income that were fixed year after year, at $ 12.9 billion. Intel’s shares increased 0.2% after this week’s announcement, but despite an increase of 21.58% this year to date, they have still dropped 50.85% during the last five years.
