US has no choice but to help Intel turn around its business in the hope that it will provide chip manufacturing security against China. Without the full details of the stake, we can only speculate what stipulations the US gov’t has imposed on Intel, if not talks are still on going - but…IFS and ProdCo split is likely going to get more pressure. Chip manufacturing is US top priority, chip design is aplenty. This is a boon for IFS since the gov’t could help in many ways to get the customers it badly needs. For ProdCo, it cannot stand alone and it has to find a host to attach - hello Qualcomm!
But before this happens, big internal battle is being played out. NS will not concede without exhausting every tooth and nails. Good luck!
27 replies (most recent on top)
No more severance pay next layoffs will be Elon/Trump style
@OP
It means that Intel is running out of cash, customers, time
and now it is seeking last options
Government ownership to avoid receivership
Fab coownership at risk of margins (Apollo)
Ownership by potential customers (SoftBank) at the expense of x86 Product Company
Remember who the last in line will be…when or if the cash is spent but the revenues don’t materialize
the employees
It means Intel is a welfare recipient.
Just pretend to do something, keep busy to attract government money.
Trump has been working hard to save Intel:
- First he threatened TSMC to help Intel, which got rejected.
- Next push other companies to work with Intel, which did not work.
- Ask other companies (Nvidia, AMD) to pay 15%-300% more tariffs to help Intel, this is LOL. This will make Intel lose customers.
All measures above make the world know the weakness of Intel, and make Intel lose more customers.
Apparently Trump does not know that Intel has most manufacturing sites in other countries, NOT in US.
Bessent just stated that the govt would not force any company to use IFS.
By all appearances this is just a passive investment, similar to what happened with GM during the 2008 recession.
So far the stock has not reached previous recent highs, so looks like it may continue to trade in a range, but that the floor is being set in the low $20s by these investments.
If some usual Fall weakness or even the much hypothesized recession actually happens, then the stock will still follow the sector unless such time as Big Tech starts signing up for IFS.
Nutlick says this will be a non-voting equity investment.
@OP The govt putting a stake on Intel might suggest that the company is actually a vampire, but that makes no sense so maybe restate the question in English or something.
It means the quarterly bonuses will be paid in TACOs.
Fabs will be ringfenced and saved and kept afloat by stakeholders that don't want to pay massive tariffs on TSMC chips. The rest of the company will just be a stakeholder, many units will cease to exist.
Intel Corp market cap is ? $105 B
10% is a mear $10.5 B
Cheap and easy C/S equity stake and no loan to worry about
Turning over the Intel debt rocks while the tide is low
$20B ST $50B LT
No product innovation roadmap and just build more and more fab space and install toolsets
Debt charts since 2010 on rapid pace to bankruptcy 7-11-13
10% is real cheap
4.37B C/S shares outstanding
Feds get 437M C/S for staking back INTC from the Wolves 7-11-13
Dial 911 and Fire the Intel board immediately
Overbuilt over constructed over prima donna toolset suppliers
Missed the EUV gen 1 in 2010 and now were here
Lipton Ice Tea aint over with layoffs yet
50K and only electro mechanics survive
Keep em wafer cycling bro
Shorties have to cover the shares. All the fabless guys have to use IFS.
I don't believe OP realizes the government investment will only grow over time.
It means Intel only has about 10% revenue/collaboration with the US Govt so the US Govt only cares about that 10%
It means Buckle up Dorothy because the name Intel on the fabs is going Bye Bye.
It means: Buckle up Dorothy because the name Intel on the Fabs is going Bye-Bye
@bv why keep it to just weekends? At least before RTO. I’m in RA and have plans to take three. Hoping to make it a handful and get up to five by five o’clock. Come by?
An-l probes for fab access , ur--e testing each Tuesday with the Sargent staring at your wiwi
I don't believe OP [insert cringey, repetitive and unfunny cr-p]
Yes, it does seem to mean that Intel is buying the President a stake taco.
Means steak and kidney pudding for shareholders
Any govt bailout that doesn’t wipe out shareholders for failing to hold board accountable is only going to reward incompetence and result in more bonus money and stock buybacks for said incompetent management.
I don't believe OP think the US Govt is putting a stake on top of Intel.
Elon will be brought in to make Intel efficient.
@a6 With Intel 18A chip wafer yield of 10% only, with the same Intel mentality what do we expect the 14A yield would be? Intel chips are only good for low end consumer products such as TVs, printers, garage door openers, and toys, etc. . . . LOL
we can only speculate what stipulations the US gov’t has imposed on Intel
One thing you can be sure of is that those stipulations will be very Trumpian.
The government only cares about the manufacturing capabilities. The rest of the company will be sold off.
It means bye bye Taiwan.