Intel Cautions Over Recent US Investment
(MENAFN) Intel, a leading American semiconductor company, issued a cautionary statement on Monday regarding the Trump administration's recent move to obtain a 10% ownership stake in the firm.
The company emphasized that this development could hinder its global business operations and lead to potential "adverse reactions."
In a filing with the Securities and Exchange Commission (SEC), Intel explained that "Sales outside the US accounted for 76% of the Company’s revenue for the fiscal year ended December 28, 2024."
The company added that having the U.S. Government as a major shareholder could expose it to further "regulations, obligations or restrictions," including foreign subsidy laws in other countries.
The tech giant pointed out that the lack of precedent for such government involvement in private corporations makes it challenging to predict all potential consequences.
The firm warned that there may be negative responses from "investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors," either "immediately or over time."
Furthermore, Intel acknowledged the potential for legal disputes and heightened political or public attention concerning the deal.
Another concern raised by Intel involves political uncertainty in Washington, which could ultimately render the agreement invalid, placing both current and prospective shareholders at risk.
Last Friday, the White House officially confirmed its decision to secure a 10% stake in Intel.
Part of the roughly $8.9 billion investment will be sourced from grants connected to the CHIPS Act, while the rest will be drawn from various federal funding allocated to support secure chip manufacturing programs.
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