Trump’s Intel deal moves America to state-run capitalism
The money of $ 8.9 billion was allocated to Intel, but has not yet been paid because it has not yet met the measurements. Unlike the Trump agreement, there are no performance barriers.
The change in grant money for the equity is the biggest public-private agreement that the US government has been in the 2008 global financial crisis during the 2008 global financial crisis, where the US government was afraid of a financial system collapse.
‘People come in and they need something. I hope I have many other cases like [the Intel deal]. ‘
Donald Trump
Trump’s private companies with US private companies are pursuing a series of unusual agreements that raise eyebrows and create criticism in the Republic.
These include 15 percent “Tax” imposed on Nvidia and AMD sold some of the more advanced chips to China, and they are banned from selling to China until they agree to give a share of their income.
Trump also suggested that the US should be given a share of Tiktok in the US business, which was forced to sell the parental feast and demanded a “gold share ında in Steel, USA as the price of the firm’s approval for the purchase of the company by Nippon Steel. The administration also received 15 percent of the US Earths miners.
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Trump’s trade agreements with Japan and Europe and others will also contain great commitments for investment in the United States – the investments that Trump will depend on his discretion.
Trump said on Monday that the economic strategy that supports the Intel agreement was “as much as possible”.
“People come in and they need something. I hope I have more cases like this [the Intel deal]. “
There are suggestions that other technology companies, such as Taiwan’s TSMC and South Korea’s Samsung, who have not yet been paid within the scope of Fips and Science Law, may face a similar pressure to give equality to the government if they want funds.
These agreements will be anathema for traditional Republicans who committed to the release of market capitalism, which has a Darwinian element in the United States.
The Intel agreement would be encouraged to the Republicans, where the democratic senator Bernie Sanders, whom they saw as a socialist, was enthusiastically approved by Bernie Sanders.
Intel, a market value of $ 107 billion, did not need government equality. Recently, it has collected 2 billion dollars from giving shares to Japan’s Softbank.
Once in the United States, the dominant chip designer and manufacturer now delay companies such as Nvidia and AMD in a bad delay and have very few external customers, if any. The company caused losses in each of the last six quarters, and Foundry lost $ 13 billion last year.
The problem is not a balance sheet in technology. He missed his smartphone and AI revolutions and the transition of the industry to graphic processing units that made NVIDIA a $ 4.4 trillion -dollar company.
The fear in the sector is to verify and protect the stock, to encourage Trump administration – or some future administrations to direct jobs and to direct US companies to Intel.
Will the US government direct US companies to direct some of their business to Intel?Credit: Bloomberg
Capitalism towards the state disrupts decision -making and competition.
Intel dismissed 15,000 employees last year and said it plans to reduce 20,000 more this year. The US economy is slowing down and the labor market shrinks. Will this printing to reduce or abandon this business cuts to help your new shareholders?
Will Nvidia and AMD see the sales from the White House to be directed to Intel because of the print on its customers or the desire of companies to be intertwined with Trump?
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Intel investigated the likelihood of selling the whole or part of the document. Is an agreement that may be for the benefit of non -governmental shareholders from the table now?
These shareholders are diluted by chance, with the subject of equity below the prices in the market. Intel gave the government a shareholder of $ 10.6 billion for $ 8.9 billion.
The administration has no consistent strategy to shift towards capitalism operated by the state.
There is no consistent industrial policy except Trump’s fixation with tariffs. It seems that there is no idea of how the government will manage the conflicts that will emerge as a policy manufacturer for the semiconductor sector and now as a participant to the IT.
Trump’s agreements are defined as “Shakedowns” and “usurp” – for cash or value by a president who fully tasks.
The rise of Nvidia and the fall of Intel showed the dynamic and almost cruel cycles of US competition and innovation. Trump now intervened in this cycle and threatens to use the agreement as a model for further intervention.
Who would think that the Republicans would follow an economic strategy that reflects the Chinese model of the 1970s or the Chinese model of the 1970s?
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