U.S. Government Buys Big Stake in Intel
The U.S. government has announced an $8.9 billion investment in Intel, acquiring a 9.9% stake by purchasing 433.3 million shares at $20.47 each. This move aligns with Intel's $100 billion expansion of its U.S. chipmaking sites. The government also received a 5-year warrant for additional shares.
The U.S. government has decided to make a substantial investment in Intel Corporation by purchasing $8.9 billion worth of the company's common stock. This acquisition consists of 433.3 million primary shares, priced at $20.47 per share, which gives the government a 9.9% stake in the tech giant.
Intel is currently engaged in a major expansion of its domestic chipmaking abilities, with plans to inject more than $100 billion into its U.S. locations. The government's involvement comes as part of this broader strategy to bolster the company's manufacturing infrastructure within the country.
Additionally, the investment agreement includes a five-year warrant that allows the government to buy an extra 5% of common shares at $20 per share, which is exercisable in specific circumstances related to Intel's retention of 51% of its foundry business.
(With inputs from agencies.)
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