Bank of Japan Holds Rates, Plans Slower Withdrawal From Bond Market
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UPI
27 minutes ago
- UPI
Trump administration seeks an equity stake in chipmaker Intel
U.S. Treasury Secretary Scott Bessent (L) and Commerce Secretary Howard Lutnick on Tuesday confirmed the Trump administration wants an equity stake in Intel in exchange for CHIPs and Science Act funding. Photo by Bonnie Cash/UPI | License Photo Aug. 19 (UPI) -- The Trump administration wants U.S. chipmaker Intel to give the federal government an equity stake to receive $8 billion via the CHIPS and Science Act. Commerce Secretary Howard Lutnick on Tuesday confirmed President Donald Trump wants Intel to give the federal government a 10% stake in Intel in exchange for money promised to it by the Biden administration upon passage of the CHIPS and Science Act. "We should get an equity stake for our money," Lutnick said when interviewed by CNBC on Tuesday. "We'll deliver the money, which was already committed under theBiden administration," Lutnick continued. "We'll get equity in return for it." Intel officials in the fall announced the tech company will receive an $8 billion grant via the CHIPS and Science Act. The president questions why the federal government is giving that much money to a tech firm that is worth $100 billion, Lutnick said. Commerce Secretary Scott Bessent also confirmed the Trump administration's demand for equity in Intel, saying it's needed to make the tech firm stable and capable of increasing domestic production of chips. Additionally, Taiwan produces most of the global supply of chips, and U.S. national security requires a domestic supply, Bessent told Bloomberg last week. The Trump administration's request for equity in Intel comes a day after Japan-based tech investor SoftBank on Monday announced it will invest $2 billion in Intel in exchange for Intel common stock. "Semiconductors are the foundation of every industry," said Masayoshi Son, SoftBank chairman and chief executive officer. "For more than 50 years, Intel has been a trusted leader in innovation." Son said SoftBank officials believe Intel will have a "critical role" in expanding the United States' semiconductor manufacturing and supply. SoftBank will pay $23 per share for Intel stock, which would amount to nearly 87 million common shares. The Trump administration, likewise, wants equity in Intel in exchange for CHIPs and Science Act funding, rather than giving away taxpayer funds. Intel had begun building U.S. manufacturing facilities near Columbus, Ohio, with an estimated completion date in 2030. Intel Chief Executive Officer Lip-Bu Tan last month said the company is slowing the pace of construction and will continue work based on market conditions, CNBC reported. President Joe Biden signed the CHIPS and Science Act into law on Aug. 9, 2022, which provides about $280 billion in funding for the U.S. semiconductor industry. Biden lauded the act as a success a year ago in August after tech companies pledged more than $395 billion in investments in electronics and semiconductors and created more than 115,000 jobs during the act's first two years. U.S. tech firms account for about 10% of the global supply of chips that power artificial intelligence and a variety of consumer goods, including appliances and computers. The United States was on pace to produce about 30% of the global computer chip supply by 2032, Biden announced.
Bloomberg
27 minutes ago
- Bloomberg
Home Depot Gains on Strong July Growth
Home Depot Inc. sales returned to growth in the second quarter as shoppers invested in smaller projects, such as lighting and gardening. Bloomberg's Jaewon Kang has more on the story. (Source: Bloomberg)
Bloomberg
27 minutes ago
- Bloomberg
Bowman Focuses on Current Fed Role, Rules Overhaul
US Federal Reserve Governor Michelle Bowman said she's keeping her focus on the regulatory portfolio she has now, including plans to overhaul big-bank capital rules and to stamp out so-called debanking. 'I have a big agenda. We're moving through it quickly,' the Fed's top bank watchdog said during an interview on Bloomberg Television. 'Obviously we need to get the capital proposals completed in the near future.' Bowman deflected when asked if she would be interested in leading the Fed as chair, rather than her current role of vice chair for supervision. Bowman is said to be under consideration for the top post by President Donald Trump. Bloomberg News International Economics & Policy Correspondent Mike McKee joins Bloomberg Businessweek Daily to discuss Bowman's comments, and preview the Federal Reserve's Jackson Hole conference. (Source: Bloomberg)
