Trump administration’s deal is structured to prevent Intel from selling foundry unit

The Trump administration appears to be determined to control the ability of Intel to make major trade decisions on the bankruptcy unit.

according to Reporting from the Times FinancialAt the Deutsche Bank Conference on Thursday, David Zinsner from Intel shared new details about the company’s last deal with the Trump administration, which gave The United States government is 10 % of the shares.

The deal was organized in a way to punish Intel if it revolves around the Foundry business unit, which makes chips for external customers during the next few years.

Last week’s deal included a five -year memorandum that would allow the United States government to take an additional 5 % of Intel, at a price of $ 20 per share, if the company carries less than 51 % of shares in its sacred business. Zinsner said it is expected to end the validity of this.

He said: “I think from the government’s point of view, they were agreed with that; they did not want to see us to take work and go down or sell it to someone.”

Zinsner added that company He received 5.7 billion dollars in cash On Wednesday, as a result of a deal last week, according to Reuters. (This cash comes from the remaining grants that were previously granted, but not yet paid, to Intel under the United States Law of Chips and Science.)

White House press secretary Caroline Levitte told reporters today that the deal is still being settled.

Intel refused to comment on a deal beyond Zinsner’s statements.

This structure of the deal is clearly a testament to the Trump administration’s desire to bring more chips to the United States, where many players in the industry turn into the manufacture of semiconductor manufacturers in Taiwan instead.

But this also compels Intel to keep a business unit. Intel Foundry mentioned Operating income loss of $ 3.1 billion During the second quarter, the source of the conflict was for semiconductors.

There were calls from analysts, members of the board of directors and investors alike to write down the troubled museum unit, which seemed like that It may actually happen in the past fallBefore the architect Intel Foundry, former CEO Pat Geelsiner, accepted. Suddenly retired in December.