Commerce Sec Lutnick: Financial security needs chips to be made in the US | investingLive

• Securities reasons needs chips made in the US
• The Chips Act was just a give away.
• Why do we give TSMC to come to the US
• We want Intel to be successful in America
• If the US is going to give you money, we want equity in giving that money
• No governance, no voting rights in Intel stake
• China sells products year at half the cost, so they put the capitalists out of business.
• We need to have the infrastructure to help their national security.
• The investments in America are for economic and national security for the United States.
• We can build pharmaceuticals and semiconductors in the United States to protect America.
• The concept of making it more efficient to get across the country is needed. We need a better rail system in the United States.

Intel shares are trading up $1.18 or 4.78% in premarket trading at $24.79

a week or so ago present Trump was calling for the resignation of Intel’s CEO Lip-Bu Tan. He went to the White House and made a deal that seems to have somewhat assured the government-sponsored support.

The other view would be that Pres. Trump took Chip Act money, and monetized it into an equity stake.

I guess it is beneficial to both, but if Intel cannot keep up with the competition that could be problematic for the government position.

Overnight, Softbank Group agrees to buy $2 billion of newly issued Intel stock at $23 a share. The move gives SoftBank a roughly 2% stake without a board seat and signals outside support for Intel’s turnaround. SoftBank will not commit to buying chips, company sources say.

SoftBank Group Corp. is a publicly traded Japanese multinational conglomerate headquartered in Tokyo. Its ownership is split between public shareholders and its founder.

It is interesting that the US took a position in Intel for a national security concern, but now SoftBank a Japanese multinational conglomerate is now a 2% owner.