Summary
The U.S. government has acquired about 10% of Intel, making it the company's largest shareholder. This move aims to help Intel compete with international companies in the microchip industry, especially against China's growing influence. The decision follows earlier financial support through grants as the government seeks to strengthen domestic technology production capabilities.
Key Facts
- The U.S. government has become the largest single shareholder in Intel by taking a 10% stake.
- Typically, the U.S. government does not invest directly in companies unless during crises; the last notable instance was during the 2007-09 financial crisis.
- The aim is to boost Intel's capability to produce advanced microchips domestically amid competition with China.
- Previously, Intel received billions of dollars in government grants under the CHIPS and Science Act.
- The government converted these grants into an equity stake in the company.
- Intel, founded in 1968, is known for inventing the modern microchip but is currently lagging behind Taiwan's TSMC and South Korea's Samsung in cutting-edge chip manufacturing.
