Zhi Tong Cai Jing·2025-08-25 04:05Core Viewpoint - The U.S. government announced an investment of up to $11.1 billion in Intel, which has been criticized as a poor decision that could harm U.S. companies and the tech sector overall [1][2]. Group 1: Investment Details - The U.S. government will invest $8.9 billion in Intel's common stock, acquiring a 9.9% stake at a price of $20.47 per share, totaling approximately 433.3 million shares [1]. - Including previously received subsidies of $2.2 billion, the total investment from the U.S. government amounts to $11.1 billion [1]. - Intel described the agreement as "historic" and emphasized its commitment to ensuring advanced technology is "made in America" [1]. Group 2: Criticism and Concerns - Scott Lincicome from the Cato Institute expressed that the investment will lead to Intel's decisions being driven more by political considerations than by business needs, potentially harming its long-term growth [1][2]. - The investment creates competitive pressure for Intel's customers, who may feel compelled to purchase Intel products regardless of their quality [2]. - There are concerns that other U.S. companies receiving government subsidies may face similar pressures, leading to uncertainty in the market [2]. Group 3: Alternative Support Measures - Lincicome suggested that the U.S. government could support Intel through various means without taking a large ownership stake, such as subsidies, long-term contracts, and tax incentives [3]. - The investment marks a significant shift in the U.S. government's approach, contrasting with previous calls for Intel's CEO to resign due to alleged conflicts of interest [3].