The US has bought 10% of Intel to save it from burning, and that plans a huge problem. One called favoritism

Intel has agreed to sell 10% of your company to the United States for a value of 8,900 million dollars. An interventionist measure is thus confirmed that has huge implications not only for Intel, but for the entire semiconductor industry. Above all, the American.

Historical crisis. The Historical crisis that Intel is going without resolving. And his new CEO, Lip-bu Tanalready I recognized A few weeks ago, “twenty or thirty years ago we were leaders. Now the world has changed. We are not among the ten main semiconductor companies.” The mass layoffs and the decision of Bet everything to lithography 18a –No 20th node– They raised a complicated future for the company, which needs maneuvering margin. He has just obtained it, but we don’t know at what price. Or maybe yes.

The agreement. According to indicate in IntelUnited States will invest 8,900 million dollars in company shares, and that adds to the 2.2 billion dollars that the US government paid to the company as part of the Chips and Science Acta federal program that was approved in 2022 and is intended to invest billions of dollars to relive the country’s semiconductor industry.

Intel was too big to fall. He Moment of weakness It is still worrying, but there have been two recent “bailouts.” The first, by the Investment of 2 billion dollars of softbank In the company. The second, much more important, the one that has just signed the US government with the purchase of 10% of Intel for 8,900 million dollars. This measure is especially striking for several reasons. For a start, is the first time that the US government intervenes a company since the rescue of the car industry was produced during the 2008 crisis. But there are more implications.

Potential loss of autonomy. The agreement is only economic and there will be no official representation of the US government in the Board of Directors of Intel. However, political pressure will now be seen without a doubt increased, and each business decision of Lip-Bu Tan and its team will be seen through a different prism: there is public money at stake.

Desperate times, desperate measures? Another perspectives from which this agreement can be contemplated is that of despair. Accepting this governmental “rescue” can be seen as a clear indication that Intel was against the ropes and there was no escape without any movement of this type. For Lip-Bu this can represent a problem for confidence in his leadership now that he has just taken command, and in fact the American senator Tom Cotton He accused him to invest in 600 Chinese companies. President Trump He came to ask for his resignation In Truth Social and then end up meeting him and congratulating him for its management.

A logical agreement for Trump’s roadmap. The US president began his mandate with the clear intention of centralize semiconductor production to the maximum and electronics products. This protectionism is closely linked to this decision, and allows to protect Intel in addition to mitigating the dependence of Taiwan and the Chips import and technology From China. The Secretary of Commerce, Howard Lutnick, Indian That the agreement is especially beneficial for the US government, pointing out that they were basically giving money to companies through subsidies, but here what the US achieves is to raise that subsidy as an investment. It is not “lost” money. It is not clear that since the money comes from the ACT chips, the US government is allowed to end up obtaining benefits of such “investment.”

Favoritism. This politicization of the semiconductor business could end up causing uncomfortable alliances and distorting competition. Now that all kinds of government agencies may have much more inclination to buy Intel chips in the future, while direct competitors such as Apple, AMD, NVIDIA or Qualcomm are harmed before a landscape of government favoritism. Intel, we insist, perhaps it was too big and iconic to drop it, but this intervention raises a change in the rules of the game that affects both Intel and its national competitors and, of course, foreigners.

Image | Intel | Gage Skidmore

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