David Zinsner, the company’s chief financial officer, announced that his company had received $5.7 billion as part of a deal struck with US President Donald Trump’s administration.
Zinsner claimed Intel, a leader in the US development of semiconductor chips, received the funds on Wednesday evening during an investor conference on Thursday.
The White House made the announcement last week that the struggling tech company with a Santa Clara, California, would acquire a 10% stake in the company.
In the event that Intel ceases to own more than 51% of its manufacturing assets as a result of the deal, the government reached a five-year warrant for an additional 5% of Intel’s shares.
There isn’t a good chance of us taking our stake below 50%, Zinsner said. In the end, I would anticipate that the warrant would be useless.
Former US President Joe Biden signed into law the 2022 CHIPS Act, which gave the Trump administration the power to convert funds designated for Intel into capital to purchase the US government’s share.
White House press secretary Karoline Leavitt stated that the Intel deal was still being worked out during a news briefing on Thursday.
The Department of Commerce is still working on the Intel deal. Leavitt remarked that the Ts and Is are still being dotted. It’s still being debated a lot.
Many of the persistent issues are based on the foundry or chip manufacturing division of Intel.
Trump campaigned for re-election despite his pledge to restore the country’s domestic manufacturing sector to outperform its technological rivals.
However, Intel indicated that it may be open to investment in the foundry as a result of taking the necessary steps to separate its design business from its foundry.
To govern its manufacturing division, the business established a separate management board.
Zinsner argued that Intel should consider a strategic investor rather than a financial one when it seeks outside funding for the foundry industry. However, he claimed Intel is “years away from that.”
Intel made the revelation in July that finding a significant customer for its 14A manufacturing process was crucial to its future. Without that, it might completely quit the foundry industry.
Zinsner downplayed the possibility of harming its foundation on Thursday. According to him, “The lawyers are always looking for areas where we should be elaborating in terms of our risks.”
Intel is under increased pressure from rivals NVIDIA, which released better-than-expected quarterly results on Wednesday.
As demand for its artificial intelligence (AI) technology grows, analyst Dan Ives of Wedbush Securities, an analyst at NVIDIA, told Al Jazeera.
The chip landscape will remain NVIDIA’s business, according to Ives, “with AI infrastructure investments continuing to grow] and the company anticipating between $3 trillion and $4 trillion in total AI infrastructure spend by the end of the decade.”
Source: Aljazeera
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