3 6 Ke·2025-08-20 09:34Core Viewpoint - The Trump administration is considering a significant shift in U.S. industrial policy by potentially converting federal subsidies into direct equity investments in Intel, which could make the government its largest shareholder [1][6]. Group 1: Government Involvement - The Trump administration is discussing converting part or all of the funding from the CHIPS and Science Act into equity, potentially acquiring about 10% of Intel's shares [1]. - Intel is set to receive approximately $10.9 billion in subsidies for commercial and military purposes, which aligns closely with the estimated $10.5 billion needed for a 10% equity stake [1]. - The government’s potential investment reflects a broader trend of increased intervention in strategic industries, as seen in previous actions involving U.S. Steel and MP Materials Corp. [6]. Group 2: Market Reactions - Following reports of the government's potential investment, Intel's stock price initially dropped by 5.5% but later narrowed the decline to over 3.6% [1][4]. - In contrast, SoftBank's announcement of a $2 billion investment in Intel at $23 per share led to a rise in Intel's stock price during after-hours trading [1][5]. Group 3: Intel's Current Situation - Intel is currently facing stagnant sales growth and ongoing losses, struggling to regain its technological leadership in the industry [3][6]. - The new CEO, Pat Gelsinger, is focusing on cost-cutting and layoffs as primary measures to turn the company around [3]. - As of January, Intel had received $2.2 billion in subsidies, but it remains unclear how this amount will factor into the potential equity conversion [4]. Group 4: Strategic Investments - SoftBank's investment is seen as a vote of confidence in Intel's role in the expansion of advanced semiconductor manufacturing in the U.S. [1][5]. - The collaboration aims to deepen commitments to U.S. advanced technology and chip innovation [5]. - Intel received nearly $8 billion in subsidies last year, making it one of the largest beneficiaries of the CHIPS and Science Act [7].