Intel Received $5.7 Billion In Cash From US Government, Says CFO David Zinsner: Report

Intel Corp. (INTC) reportedly received $5.7 billion from the U.S. government on Wednesday night, according to the company’s CFO, David Zinsner.

According to a CNBC report, Zinsner confirmed the receipt of funds from the government at an ongoing conference.

Intel’s shares declined 0.64% during Thursday’s midday trade. Retail sentiment on Stocktwits around the company trended in ‘bullish’ territory.

Last week, President Trump announced that the U.S. government would pick up a 9.9% stake in Intel in exchange for funding under the CHIPS Act. The stake acquisition is funded by the $5.7 billion that Intel was awarded by the U.S. government by the Biden administration under the CHIPS Act, but unpaid until Wednesday, and $3.2 billion awarded to the chipmaker under the Biden-era Secure Enclave program. In total, the U.S. government gets 433.3 million shares for a total sum of $8.9 billion, with a purchase price of $20.47 per share.

However, former U.S. Treasury Secretary Larry Summers on Tuesday slammed the Trump administration for this transaction, calling it “extraordinarily problematic.”

“It comes as part of a general approach to policy… what you might call deals-based capitalism rather than rules-based capitalism,” he said. “The rather remarkable and I think extraordinarily problematic transaction with Intel, where they were given more export controls freedom in return for payments to the government,” Summers added.

White House Economic Advisor Kevin Hassett compared the Intel stake to making a down payment on a sovereign wealth fund. Hassett also said that the Trump administration could pick up stakes in companies similar to the Intel deal detailed last Friday.

INTC stock is up 23% year-to-date and 26% over the past 12 months.

Also See: EU Proposes Removal Of Tariffs On US Industrial Goods To Accelerate Lower Duties On Car Exports: Report

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