A Trump Intel stake could make national security the new ‘too big to fail’

Intel, once one of the most important chip makers in the world and a vital part of the US technology landscape, has fought to comply with the growth rate of Asia -based competitors such as Taiwan Semiconductor and Samsung. Domestic players Nvidia and advanced micro devices by developing artificial intelligence chips remained in the race.

This left dependent on foreign technology supply chains, a change in which both President and former President Joe Biden saw a threat to national security.

However, Biden management is trying to address these concerns through the Cips and Science Law, which has supported $ 53 billion to the semiconductor sector, while the Trump administration seems ready to follow a more direct path. According to The Wall Street Journal, how the government can take shares in Intel now is now out.

He refused to comment on Intel Barron. White House spokesman Kush Desai said that the reports of agreements that are not announced by the administration should be accepted as speculation.

Paul Argenti, Professor of Management and Corporate Communication at the Tuck School of Dartmouth College on Friday, said, “It is difficult to think about how this can work, and it was not similar in terms of the marriage of politics and special initiative.”

“The semiconductors are really a strategic asset, there is no question about it,” he added. “However, as a shareholder, the government imposes real governance risks.”

In fact, when it comes to the US industrial policy, the president gets a new struggle. He did it Chinese -based sales agreements Nvidia and AMD Don’t take over US Steel $ 14 billion by Japan’s Nippon Steel. Ministry of Defense One 400 million dollars of stock Rare world metals in manufacturer MP materials.

If such an agreement occurs, an intel share would be different. The nearest parallel is the government’s effort to save Wall Street in the 2008-2009 financial crisis, which includes a major share of the US in the International Group of International Group. Thinking that AIG was “too big to fail ,, the government provided credit and equality in the $ 182 billion region and in 2012, it was out of the group with a profit of $ 23 billion.

Intel is like AIG, because it is critical as the largest American company that designed and produces the US economy, the technology sector, its own chips. Although he lost $ 2.9 billion in the last quarterThe investment class still carries credit ratings and the market value is more than $ 100 billion.

However, plans to build a 30 billion dollar factory center in North Ohio are full of delays. Hub is not likely to continue to work until the beginning of the next decade.

Although Intel is not close to failure, its role in the technology sector and the potential to become a player in AI are important.

Foreign Minister Marco Rubio said, “Winning the AI race cannot be negotible.” “America should continue to be dominant in artificial intelligence to promote prosperity and to protect our economic and national security.”

Earlier this year, Trump Management officials looked at a possible agreement This would allow Intel to run the documentary business as part of Taiwan Semi’s common property structure. However, Wall Street Journal reported that the president was not sold on the idea of a critical business for national security.

A government shares in Intel will allow the company lenders to guarantee the country’s demirming credit rating as a return, and possibly eliminate concerns about accessing capital for the Ohio project. However, while trying to define his strategy within the scope of the new CEO Lip Bu-tan, he may leave Intel vulnerable to dictation from the White House.

Bank of America Analyst Vivek Arya’s last customer note, “Intel at the same time challenging competition, AI pipeline lack and heavy losses continue to produce and rapidly building a good industry leader TSMC Capex is engaged in an intensive production business,” he said.

This level of complexity makes the government’s decision to be directly more challenging in a rapidly changing sector.

Government shares in key industries are not always profitable. The AIG finally paid investment, but the taxpayers lost about $ 10 billion from the rescue of Ford Motor, General Motors and Ally Financial.

In addition, the US did not see a profit from the support of the passenger railway to Amtrak.

Argenti from Dartmouth College has great risks to choose the winners in real time, ”he said. “If it presents Intel, this will seem like a visionary movement.