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

The Trump administration seems to be intended to control the ability to make the original business decision surrounding its Funding Foundry Business Unit.

Intel’s CFO David Jinsner shared new details about the company’s recent contract with the Trump administration, which gave US government is a 10% equity steakAt a Deutch Bank Conference on Thursday, according to Reporting from the Financial TimesThe

The deal was structured to punish Intel if it spreads its Foundry Business Unit, which creates a custom chip for outside customers within the next few years.

Last week’s agreement included a five -year warrant that could take 5% of the US government to Intel’s share, if the company retains less than 51% of its Foundry Business. Jeansner said he hopes that the warrant will expire.

Jeansner said “I think from the government’s point of view, they got together with it; they didn’t want to take our business and spin it or sell it to anyone,” Jeansner said.

The company that added jeansner Cash has received $ 5.7 billion Wednesday, as a result of last week’s contract, according to Reuters. (This cash comes from previously received award grants, but not yet paid, Intel under US Chips and Science Act.)

White House Press Secretary Karolin Levit told reporters today that the agreement was still being imposed.

Intel refused to comment on the agreement by exceeding Jeansar’s comments.

The structure of this agreement is clearly a proof of the desire to produce more chips in the United States of the Trump administration because many players in the industry produce production instead of Taiwan Semiconductor Manufacturing Company (TSMC).

However, this warrant forces Intel to keep a business unit that is losing money. Intel Foundry is a report The loss of operating income is $ 3.1 billion The second quarter has become a source of dispute for the time of the second and semiconductor business.

Analysts, calls from members of the board. And investors are similarly to spread the Foundry Unit of the Founded Foundry, which looks like it Actually the last fall may occurFormer CEO Pat Gelsingar before becoming the Intel Foundry architect, Suddenly retired in DecemberThe