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This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
It’s Intel season, with news pouring in from all quarters. While SoftBank’s new minority stake in Intel grabbed headlines overnight, today’s focus is on US Treasury Secretary Scott Bessent and his insights on a potential US government stake in the company.
To summarize, Bessent disclosed on CNBC that the proposed stake in Intel would be funded by converting CHIPS Act grants and possibly increasing the investment to stabilize the company. However, the US government does not plan to run the business.
Intel has received $7.9 billion in CHIPS Act grants and a facility unlocking an additional $11 billion worth of loans. It is also eligible for $3 billion under the Pentagon’s Secure Enclave program. The Trump administration reportedly considered taking a 10 percent stake, which would equate to around $10 billion.
After accounting for its CHIPS Act grants, the US government might invest an additional $2.1 billion in Intel to meet the estimated $10 billion investment figure.
Bessent has clarified that there is no talk of forcing companies to buy from Intel. This clarification addresses speculation about a potential monopoly, especially regarding onshore chip fabrication.
Meanwhile, SoftBank announced its intention to invest up to $2 billion in Intel as part of efforts to support the troubled tech giant.
This fluid situation is attracting significant attention, especially in the VC sphere. Terms like “once in a generation” opportunity are now being discussed. Whether this hype translates into tangible market opportunities for Intel remains to be seen.
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