Trump Administration Blocks Intel From Selling Foundry Unit
Intel’s deal with the Trump administration limits its foundry unit sale. Here’s what it means for the chipmaker’s future.
Matilda
Trump Administration Blocks Intel From Selling Foundry Unit Trump Administration Blocks Intel From Selling Foundry Unit
The Intel foundry unit deal with the Trump administration has raised major questions about the future of Intel’s business strategy. Under this agreement, Intel accepted a 10% equity stake from the U.S. government, but with strict conditions that limit its ability to spin off or sell its foundry unit. Many are now asking what this means for Intel’s ability to compete globally in the semiconductor industry while also balancing government oversight. Image Credits:Intel Corporation How The Deal Affects Intel’s Foundry Business
At the heart of the Intel foundry unit deal is a safeguard designed to prevent Intel from separating its custom chipmaking business. The foundry unit, which manufactures chips for external clients, cannot be spun out or sold within the next few years without facing financial penalties. The agreement even includes a five-year warrant allowing the U.S. government to claim an additional 5% of Intel shares if the…
