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It is not illegal for the U.S. government to buy a stake in Intel; the U.S. government’s 10% equity stake in Intel, valued at $8.9 billion, was established through a recent agreement where Intel provided shares funded by grants already authorized under the CHIPS and Science Act. This move, while historically significant, was legally permissible within the framework of existing legislation, which provides for government funding and investments to bolster domestic semiconductor manufacturing.

Details of the Agreement

The U.S. government received a 9.9% stake, or approximately 433.3 million shares of Intel common stock. The investment of $8.9 billion was funded through outstanding grants from the CHIPS and Science Act and the Secure Enclave program, which had not yet been paid to Intel. The agreement aims to advance national priorities by strengthening the U.S. domestic semiconductor industry.

Legal Basis -—CHIPS and Science Act:
The agreement leverages funding and incentives authorized by the 2022 CHIPS Act, which provides billions of dollars in government funding for chip-related activities. Part of the funds for this investment also come from the Secure Enclave program, which supplies the Department of Defense with semiconductors.

Governance and Rights
Passive Investor: The U.S. government will not have a board seat or other governance rights in Intel, acting as a passive investor. The government has agreed to vote with the company’s board on matters requiring shareholder approval, with some exceptions.

Thank you for talking the time to lay out the facts.
Tongues wag while American safety is at risk.
Trump puts America first in this, as in all things. Without a chipmaker on American soil America is not only vulnerable in time of war but the revival of American industry including defense is problematic.
To try and parse out theoretical implications via a created crisis is in character for libertarians and others who try desperately to find fault in all things Trump or reasons to justify inaction. Snares to entrap the honorable and to obstruct America’s revival.

--- "Legal Basis -—CHIPS and Science Act:
The agreement leverages funding and incentives authorized by the 2022 CHIPS Act, which provides billions of dollars in government funding for chip-related activities."

That act was passed when and under which administration? 2022 and under the Biden administration.

Nothing can go wrong. Nothing can go we--- wr--- wr---