Why does the United States government not need the Savior Intel

The Trump administration manufactured unprecedented and confusing, moved last week when it announced plans to transfer money that was supposed to receive Intel through government granting programs in the Joe Biden era in a 10 % share of shares.

While it is still unclear whether converting government grants into stocks is possible – This is for discussion – It is less clear how this step will solve the biggest INTEL problem, which is the museum of nonsense. Even Intel is not convinced.

Intel Foundry, which manufactures semiconductors for external customers, was not fruitful for the company. The Business Department lost possible large contracts, such as contracts with Sony, According to ReutersAnd the company cost much more than it brought.

Intel Foundry reported the loss of operational income for 3.1 billion dollars In the second quarter. The company has also cleared thousands of people since the beginning of the year, with The museum business unit is especially hit.

Differences on how to run Intel Museum works struggle He was partially responsible for the resignation of the lips Bo from the company’s council in August 2024. Kan Kan The appointed CEO In the spring of 2025.

Kevin Cassidy, Managing Director of Rosenblatt Securities, told Techcrunch that he does not see how this deal will solve Intel problems. He said that Intel Foundry does not need money to solve its problems, instead, she needs to change its approach to its customers.

“They did not understand customer service,” Cassidy said about Intel Foundry’s conflicts to sign customers. “They have always been manufactured internally, and the manufacturing group was king. It is difficult to be a group that focuses on customer service when you think you know the best.”

Intel did not respond to a request for comment.

Tamulization effect

Intel recently recognized the possible negative aspects of this deal in SEC file Publishing Monday. The company has highlighted the risks it carries for its investors and customers – two groups of Intel are naturally adopting.

This deal reduces current shareholders and reduces governance rights. The Trump administration said it will vote alongside Intel’s interests, which can help the company move forward in its ideas forward; However, commercial decisions that were actively incompatible with the current investor base with efforts to confirm the interest of investors.

Cassidy said: “I will be disappointed if you are holders of shares.” “Intel abandoned 430 million shares, diluted my shares, and (they) managed to buy them at a 20 % discount.”

Intel also mentioned the possible effect that this can have on her international works. The company reported that the vast majority of the company’s revenues in its last financial year, 76 %, came from outside the United States.

Amid the current international trade turmoil in the United States, companies outside the United States will now have to deal with whether they will work with a partly owned by the United States government.

Send signals

Not everyone is destruction and depression about the last treatment. Cody Asri, the administrative director and prominent research analyst at Benchmark Company, told Techcrunch that the company’s international customers do not see away from Intel.

Asiri said that the deal is not perfect, but the government’s commitment to an Intel future may give the chips maker the lawsuit he needs – even if it is just a small step on a long way to recover.

“Intel has shown that it has been struggling over the past decade and may need a kind of government intervention; the rescue may be very harsh, but the government’s intervention is seen as a starting point towards the reactivation of Intel,” said yesterday. “I do not necessarily agree with being a reform for everyone in any means. It is at least a fan to know that the government supports Intel instead of challenging the leadership as it was a month ago.”

Andrew Rocco, a stock expert of stock in Zacks Investment Research, agreed that the deal with the American government may be positive. In an interview before the official announcement of the deal, Rocco said this could give Intel a larger role in the current batch of management of artificial intelligence brilliant Stargate initiative And bring the manufacture of semi -conductors.

“The market will be very large, the data center and the chips market, even if they get a small slice,” said Roko. “There is room for success. This will be positive. You must have a five to 10 years of time.”

However, both analysts warned that the deal would not be Intel. In order to save a real long -term, Intel needs to look inside.

Although the Trump administration claims it will be a negative investor, this does not mean that its participation cannot put it in the business field of the company. Cassidy said that although we hope it does not come from pressure or strength, it is certain that it is possible.

Although the government may not have to do so. Unlike higher education, Corporaate America has proven more than happy with a tendency towards the Trump administration’s goals and policies. Companies they have Intriguality programs, stock and inclusive programs – Although they harm themselves in this process. The prevalence of feelings supporting America has become saturated in Ads and The company’s connection Since Donald Trump took office in January.

If the Trump administration informs the American companies to purchase Intel chips and devices, they may not have to do the same persuasion to obtain companies on board.

Acre and Cassidy said that the real test of Intel will not be the deal, or even the optics of it. It would be whether Intel can draw attention to the Chipming 14A processor. Tan said the company Production will not start in the 14A manufacturing process They even got a great interest for customers.

“There is nothing not guaranteed that Intel will be able to return to the market at the front edge,” Cassidy said. “Intel has burned money for a few years, I don’t know if there is more money to buy time to find the formula to return it to the front edge.”