Sou Hu Cai Jing·2025-08-29 02:15Core Viewpoint - The U.S. government has acquired a 10% stake in Intel to prevent the company from divesting its chip manufacturing business, which has been under pressure due to ongoing losses [3][6]. Group 1: Government Investment - The U.S. government agreed to convert $8.9 billion in federal subsidies from the 2022 CHIPS Act into equity, acquiring a 10% stake in Intel [3]. - The agreement includes a five-year warrant that allows the government to acquire an additional 5% of Intel's shares at $20 per share if Intel's ownership of its foundry business falls below 51% [3][6]. Group 2: Financial Performance and Challenges - Intel's foundry business faced significant challenges, reporting a loss of $13 billion last year due to difficulties in competing with TSMC and attracting external customers [6]. - The CFO of Intel, David Zinsner, expressed skepticism about the likelihood of reducing the company's stake in the foundry business below 50%, indicating that the government shares this view [3][6]. Group 3: Implications of the Deal - The government’s direct investment may serve as a constraint mechanism to prevent Intel from pursuing divestiture, which the government does not favor [8]. - Despite the investment, major companies like Nvidia, Apple, and Qualcomm have yet to place orders with Intel, as the company struggles to demonstrate reliable manufacturing capabilities [8].