Trump-Intel deal is official

US The government makes $ 8.9 billion Investment in IntelThe 9.9 percent stake in the company, according to a press statement published by the company on Friday.

Investment will be funded by $ 5.7 billion in grants Intel The company was granted under the 2022 and $ 3.2 billion chips Law, the company was granted as part of the safe pocket program, says the press statement.

The news comes shortly after President Trump described the deal at a White House press conference with journalists. “I said,” I think you should pay us 10 percent of your company. “Trump said,” They said yes – this is about 10 billion dollars. “I think it’s great for them.”

Trump added that the CEO of Intel, LIP-BU Tan, “has followed the desire to maintain his job” and “ended up giving $ 10 billion to the United States.” It seemed to be a situation earlier this month, as he called for Tan’s resignation due to the financial director of the reported executive in China. Trump later relieved his position after his meeting with Tan in Washington.

Trump and US Trade Minister Howard Lootnick said that the deal aims to stimulate the stalled chips giant and return more links to the United States. This step is part of a broader strategy to reduce the country’s dependence on China.

Brian Quinn, a professor at the Law College at Boston College, says it is confusing that the government has negotiated with regular stocks in Intel, instead of favorite stocks.

He said: “It amazes me as a tremendous brightness of time.” “The government said it wants to make sure that taxpayers get something of this, but it is not clear how this investment will do so. If the stock is preferred, it could have guaranteed mandatory profits and make sure that the government is declining.”

While public/private sector partnerships are not completely uncommon in the United States, legal experts say this type of government intervention is unusual.

“The reason is that the government is injecting the auto industry and insurance companies (after 2008) is obtaining it through the crisis,” says Timothy Mayer, a professor of international business law at Duke University. “This is not a wider financial crisis. This is a company that greatly needs to enhance its market share.”

Mayer added that he is interested in a vision “to what extent will the US government use its influence through the technology industry to transfer purchase orders to Intel.”

When asked about the comment, he referred the White House wired to the Trump’s social account. “The United States has not paid anything against these shares, and the value of shares is now estimated at about $ 11 billion. This is a big thing for America, and also, a lot for Intel,” as Trump has published. “Building semiconductor and chips, what INTEL is doing is essential for the future of our nation. Make America great again! Thank you for your interest in this issue.”