Trump -Administration’s Great Intel -Investing comes from already awarded grants

Intel officially announced an agreement with President Donald Trump’s administration on Friday afternoon following Trump’s statement that the government would take a 10% share in the fighting chipmaker.

While Intel says the government is making a “$ 8.9 billion investment in Intel Common Stock, the administration does not appear to oblige new funds. Instead, it is simply to do well with what Intel described as “grants previously awarded but not yet paid to Intel.”

Specifically, the $ 8.9 billion is assumed to come from $ 5.7 billion awarded, but not paid to Intel according to Biden Administration’s Chips Act and $ 3.2 billion also awarded by Biden Administration through the Secure Enclave program.

In a post on his Social Network Truth Social, Trump wrote, “The United States paid nothing for these shares.” Nevertheless, he described this as “much for America and also much for Intel.”

Trump has been critical of the chips law and called it a “terrible, terrible thing” and urged the house’s speaker Mike Johnson to “get rid” of it. In a June legislative filing, Intel said that although it had already received $ 2.2 billion in chips -law financing, it had subsequently requested an additional $ 850 million in reimbursement that the government had not yet paid.

According to the New York Times, some bankers and lawyers believe that the chips law may not allow the government to convert its grants to equity and open this agreement to potential legal challenges.

In addition to his targeting of the chips law, Trump earlier this month also accused Intel CEO Lip-Bu Tan for conflicts of interest and said he should “resign immediately.” The president was more positive to Tan on Friday and said of truth social that he “negotiated this agreement with LIP-BU Tan, the highly respected CEO of the company.”

To his part, Tan said in a statement that the company is “grateful for the confidence that the president and administration have placed in Intel, and we look forward to working to promote American technology and manufacturing management.”

Intel’s announcement also states that the government’s investment will be “passive” without board seats or other management and information rights.