Government Stake & Investment - The government is considering taking an equity stake in Intel in exchange for chips act funding, a shift from the Biden administration's grant-based approach [1][2] - The proposed equity stake is viewed as a way for the American taxpayer to benefit from the investment in semiconductor manufacturing [1][8] - The potential equity stake under discussion is around 10% of the company [1] - The government aims to secure a good return for the American taxpayer by converting grants into equity [1] Semiconductor Industry & National Security - National security concerns necessitate domestic chip manufacturing to reduce reliance on Taiwan, located 9,500 miles away from the US and only 80 miles from China [1] - The initiative aims to build infrastructure and economic capacity in America for chip manufacturing, similar to deals with Japan and Korea [1] - The government desires to have an American company capable of manufacturing US transistors [1] Chips Act & Subsidies - The Chips Act is criticized as a giveaway to wealthy companies like TSMC, which has a trillion-dollar valuation [1] - The previous administration's approach of providing grants to companies is viewed as less beneficial to the American taxpayer compared to securing equity [8] - The government asserts that converting grants into equity is a smarter and more important approach for the American taxpayer [8] Governance & Control - The government clarifies that the equity stake would be non-voting, implying no direct governance control [3] - The golden share concept used with US Steel, involving 12 promises, is mentioned as a mechanism to ensure companies fulfill their commitments [4][5] - The golden share for US Steel ensures the company lives up to its 12 promises [4][5]

Core Insights - Allied Critical Metals Inc. has appointed Major General (Ret.) James A. "Spider" Marks to the Board of Directors of its U.S. subsidiary, Allied Critical Metals (USA), Inc. This move aims to strengthen the company's operations in the U.S. tungsten market [1][3]. Company Overview - Allied Critical Metals Inc. is a Canadian-based mining company focused on the Borralha and Vila Verde tungsten projects in northern Portugal, which are 100% owned by the company [1][6]. - The company is dedicated to the importation, marketing, and sales of tungsten in the United States, addressing the growing demand for this critical mineral [1][5]. Leadership and Expertise - General Marks brings over four decades of leadership experience from military, intelligence, and commercial sectors, including significant roles in the U.S. Army and executive positions in private industry [2][3]. - His expertise in global defense, logistics, and strategy is expected to enhance Allied USA's operational and strategic direction, particularly in securing reliable tungsten supply chains for the U.S. [3][4]. Market Context - Tungsten is classified as a critical mineral essential for industries such as aerospace, defense, and electronics. The tungsten market is valued at approximately USD $5 to $6 billion [6]. - The U.S. is actively seeking to diversify its sources of tungsten, as current global supply is heavily dominated by China, Russia, and North Korea, which account for about 86% of total global supply and reserves [6].

The war in Ukraine is reinforcing Russia’s view of the Arctic as a strategic priority, argues Mikhail Komin. “It is viewing almost every remaining aspect of Arctic policy through a national-security lens,” he warns https://t.co/xjnccxi8r1 ...

The White House is looking at taking an actual stake in Intel and could use money from Biden's Chips Act to do it. How do you see that. Well, I think that's a distinct possibility, and especially because, well, if you look at where the chips are produced, the most important chips in the world, which I can say is probably two fold, of course, chips, but also defense types of chips, and not just for the US, but drones and all manner of smart, you know, killing machines that they use in the in defense are made ...

US-China Trade and Technology - A group of Senate Democrats is questioning President Trump's decision regarding Nvidia and AMD selling AI chips to China in exchange for a 15% revenue cut [1] - Lawmakers are concerned that this deal could compromise America's competitive edge and strengthen China's military [2] - The discussion involves the potential for industrial policy and government stakes in companies like Intel to reshape national security [2] Industrial Policy Debate - The discussion highlights differing views on industrial policy, with some arguing it has historically failed and others seeing it as necessary for national security, particularly in the semiconductor industry [4][5][7][8] - Concerns exist about relying on China for critical technologies like semiconductors and rare earth processing, prompting calls for thoughtful policy to address these vulnerabilities [8][20][21] - The debate includes the potential trade-offs of industrial policy, such as its impact on economic growth, consumer costs, and national security [10][11] Economic Perspectives - One perspective emphasizes the success of the free enterprise system in the US, citing the performance of the stock market and the "magnificent seven" companies [17][19] - Immediate expensing for capital purchases is highlighted as a positive policy for encouraging domestic industrial production [22] - Recent economic data indicates positive earnings reports, suggesting a favorable environment for investors [26]

Political Landscape & Social Unrest - Significant protests against Netanyahu's government, initially focused on judicial system overhaul, have resumed with full force, including hundreds of thousands of people in Tel Aviv [1][2] - Prime Minister Netanyahu remains defiant, accusing protesters of potentially capitulating to Hamas and endangering national security for short-term gains [2] - Polls suggest Netanyahu is out of touch with majority opinion, potentially leading to major dissent in the future [3] Military Operations & Strategic Considerations - Israel's planned takeover of Gaza City has been delayed despite security cabinet approval ten days prior [5] - The military approved operational plans just yesterday, potentially involving call-up orders for thousands of reservists this week [6] - Israel is reportedly leaving a door open for resumed truce talks with Hamas, hoping the threat of a final push against Hamas will prompt them to re-enter negotiations [6]

Group 1: Cathie Wood's Investment Strategy - Cathie Wood is focusing on national security technology as an emerging investment theme alongside artificial intelligence (AI) [1][4] - Wood has a significant position in Palantir Technologies, which is a key player in AI and military operations [2][4] - Recent buying activity indicates Wood is expanding her portfolio to include L3Harris Technologies, suggesting a strategy to diversify within the national security sector [4][10] Group 2: AI in National Security - AI is becoming a transformative force in modern military strategy, with applications in satellite imagery analysis, cybersecurity, and autonomous systems [6][7] - Established defense contractors like Northrop Grumman and Lockheed Martin are recognized players, but Palantir's versatile AI platforms set it apart [7][8] Group 3: L3Harris Technologies - L3Harris manufactures mission-critical systems that are expected to benefit from AI integration, making it an attractive investment for Wood [10][12] - The company is collaborating with Palantir on the U.S. Army's Titan program, highlighting its role in significant defense contracts [12] - L3Harris trades at an EV/EBITDA multiple of 16.4, which is relatively high but may not fully reflect the potential upside from AI integration [15][16]

Donald Trump has allowed Nvidia to resume limited exports of its artificial-intelligence chips to China in return for a 15% cut of the proceeds for Uncle Sam. In doing so, he has surrendered an important part of America’s national-security strategy for a pittance https://t.co/6AWjSrh6v8 ...

Intel's Challenges and Needs - Intel faces technological and customer acquisition challenges, not just financial ones [1] - Intel needs external capital infusion, whether from customers or the government, to secure its foundry for the long term [6] - Intel requires tens of billions of dollars to reach 14nm production, in addition to its own investment and customer contributions [6] - Intel needs to secure customer wins to build confidence, even though its technology is considered good on paper [8] - Intel's capital needs are at the root of its current situation [9] Government and Industry Perspectives - The U S government should support a U S company like Intel to make leading-edge chips for national security reasons [3] - The U S government taking equity in Intel could incentivize others to support and buy from them [7] - Tariffs or regulations could encourage customers to use Intel, but winning on technological merit is preferable [11] - TSMC is unlikely to bring leading-edge technology to the U S, making Intel the best bet for advanced chip manufacturing in the U S [10] Potential Solutions and Considerations - A combination of private equity and government investment in Intel makes sense to protect that investment [11] - Structuring a government investment in a fair way, such as divesting shares or paying back the investment, is crucial [12][13] - The government's involvement in investments is very tricky [13] - Intel's stock has increased 27% over the course of five days [4]

Government Funding & National Security - The White House is considering using Chips Act money for a potential equity stake in Intel [1][2] - This initiative aligns with national security efforts, particularly in competition with China, similar to the $400 million preferred equity stake investment in NTP materials, a rare earth company, by the Defense Department [4][5] - The administration aims to achieve onshoring of chip manufacturing in the US [6] Intel's Position & Potential Deal - Intel may receive almost $8 billion, potentially up to $11 billion, in loans pre-agreed [2] - Intel has not directly commented on the reporting but issued a statement generally supporting onshoring manufacturing [6] - The idea of government equity stake in Intel reportedly arose during a meeting between Intel's CEO and the President [6][7][8] Revenue Sharing & Restrictions - Nvidia and AMD would be giving 15% of their revenues generated out of China to the federal government [5]