Semiwiki on LinkedIn Semiwiki on Facebook Semiwiki on Twitter Register / Log in 
Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/threads/government%E2%80%99s-intel-intervention-is-%E2%80%98essential%E2%80%99-for-national-security-tech-analyst-says.23420/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2021770
            [XFI] => 1050270
        )

    [wordpress] => /var/www/html
)

Government’s Intel intervention is ‘essential’ for national security, tech analyst says

F

Fred Chen

Moderator
Published Fri, Aug 15 202510:21 AM EDT Updated Fri, Aug 15 20254:07 PM EDT
thumbnail

Annie Palmer@in/annierpalmer/@annierpalmer

Key Points
  • - Government intervention in Intel is “essential” to protect U.S. national security, analyst Gil Luria said.
  • - Bloomberg reported that the Trump administration is considering having the U.S. government take a stake in the struggling chipmaker.
  • - “Intel has had many opportunities over decades to get it right, and it hasn’t. So we need to intervene,” Luria said.
A government intervention in struggling chipmaker Intel is “essential” for the sake of national security, analyst Gil Luria said Friday, following a report that the Trump administration is weighing taking a stake in the company.

“We’re all capitalists,” Luria, head of technology research at D.A. Davidson, said in an interview with CNBC’s “Squawk Box.” “We don’t want government to intervene and own private enterprise, but this is national security.”

Bloomberg reported Thursday that the Trump administration is considering having the U.S. government take a stake in Intel.

The news sent the chipmaker’s shares climbing, and the stock closed nearly 3% higher Friday. Intel wrapped the week up 23%.

Intel previously declined to comment on the report.

Luria said such a deal is needed to revive Intel and reduce the country’s reliance on companies like Samsung and Taiwan Semiconductor Manufacturing Co. to manufacture chips. President Donald Trump has called for more chips and high-end technology to be made in the U.S.

How the White House could structure such an intervention is still in question. Bloomberg reported Friday that the administration has discussed using funds from the CHIPS Act.

Intel received $7.9 billion from the Department of Commerce through the CHIPS Act, and it was awarded roughly $3 billion under the CHIPS Act for the Pentagon’s Secure Enclave program.

“Intel has had many opportunities over decades to get it right, and it hasn’t. So we need to intervene,” Luria said. “The government’s going to come in and it’s going to give Intel unfair advantages, and if it’s going to do that, it wants a piece of the business.”

Intel CEO Lip-Bu Tan met with Trump at the White House on Monday after the president called for his resignation based on allegations that he has ties to China.

Luria pointed to OpenAI CEO Sam Altman and Meta CEO Mark Zuckerberg’s comments that the rise of superintelligent AI could be “the next wave of nuclear proliferation,” as evidence that direct intervention by the government is needed.

“We can’t rely on somebody else making shell casings for our nuclear arsenal,” Luria said. “We have to get it right.”

 
I will respond to this in more detail on Monday. While I appreciate the media support Annie Palmer has no idea what she is writing about.

The CHIPs Act was valued at $52.7B but the actual cash awarded thus far is only about $4B. For the cash to be released the recipients must reach milestones and continue to be qualified for the CHIPs Act. Hopefully the Intel award can be renegotiated. The same goes for other awards (Samsung for sure).

Intel was awarded close to $11B ($7.865B commercial and $3B Secure Enclave) with up to $11B in loans. Only a small portion (about $2B) of that has been paid out thus far. The 25% tax credit is in addition to those amounts and scales with Intel’s qualifying capex.

Hopefully someone qualified takes a close look at this program and reallocates money to support Intel. That seems to be the quickest way for the USG to help Intel without actually taking a stake in the company.
 
Daniel Nenni said:
I will respond to this in more detail on Monday. While I appreciate the media support Annie Palmer has no idea what she is writing about.

The CHIPs Act was valued at $52.7B but the actual cash awarded thus far is only about $4B. For the cash to be released the recipients must reach milestones and continue to be qualified for the CHIPs Act. Hopefully the Intel award can be renegotiated. The same goes for other awards (Samsung for sure).

Intel was awarded close to $11B ($7.865B commercial and $3B Secure Enclave) with up to $11B in loans. Only a small portion (about $2B) of that has been paid out thus far. The 25% tax credit is in addition to those amounts and scales with Intel’s qualifying capex.

Hopefully someone qualified takes a close look at this program and reallocates money to support Intel. That seems to be the quickest way for the USG to help Intel without actually taking a stake in the company.
Click to expand...
Certainly, no matter how slow the speed of the establishment of Intel's factory...
I think the Chips act is slow to respond, can't you move at a better tempo?
We hope that the government will move firmly,
If you promised, please respond as soon as possible.
There are advantages not only to Intel but also other manufacturers targeted by Chips Act.
 
Last edited:
Daniel Nenni said:
I will respond to this in more detail on Monday. While I appreciate the media support Annie Palmer has no idea what she is writing about.
...........................................................
Hopefully someone qualified takes a close look at this program and reallocates money to support Intel. That seems to be the quickest way for the USG to help Intel without actually taking a stake in the company.
Click to expand...

Looking forward to your story/view, although probably not too surprising to me being a happy camper of the SemiWiki camp site and reading your posts and many other happy campers' opinions since 2015!

Indeed the analyst seems to have more of a journalistic education and Amazon/e-commerce background/interest:
https://www.linkedin.com/in/annierpalmer/

The USG's info on Biden's CHIPS-act, with lots of links to background material can be found here:
https://www.congress.gov/crs-product/R47523

All the presently awarded CHIPS-act funds/grants and other info is on this NIST web portal:
https://www.nist.gov/chips

Bill Frauenhofer seems to be the Trump's administration guy running now the CHIPS-program since 28 July; so I guess interesting to know what Bill's view is on using INTEL's Chips-act money in relation to INTEL's situation, and potentially demanding INTEL shares in return for further/additional USG's support:
https://www.nist.gov/news-events/ne...oints-bill-frauenhofer-director-chips-program

This is Bill's LinkedIn profile: https://www.linkedin.com/in/bill-frauenhofer-09a871/
it seems an investment banker / financial guy with a frequent investment bank "job-hopper's" history in Silicon Valley moving from CITI to UBS, Jefferies, BoA Meryll Lynch and most recently employed at Morgan Stanley till he took the Director's position at the CHIPS-office at the Commerce Department.

No idea about links between LBT and BF from their past professional adventures, nor about any historic links between BF and Wall Street billionaires/POTUS' Lutnick and Bessent.

Maybe LBT's Walden International can provide some Asian investors' money to support INTEL as well? Perhaps some tariff's (100%??) chip's money can be channeled to INTEL's LBT and Yeary?

Interesting semi-times for Wall Street bankers it seems, less so for all the INTEL employees being let go by the many, many thousands.

@Dan, any moment in your long semi-career you ran into BF?
 
Last edited:
Fred Chen said:
Published Fri, Aug 15 202510:21 AM EDT Updated Fri, Aug 15 20254:07 PM EDT
thumbnail

Annie Palmer@in/annierpalmer/@annierpalmer

Key Points
  • - Government intervention in Intel is “essential” to protect U.S. national security, analyst Gil Luria said.
  • - Bloomberg reported that the Trump administration is considering having the U.S. government take a stake in the struggling chipmaker.
  • - “Intel has had many opportunities over decades to get it right, and it hasn’t. So we need to intervene,” Luria said.
A government intervention in struggling chipmaker Intel is “essential” for the sake of national security, analyst Gil Luria said Friday, following a report that the Trump administration is weighing taking a stake in the company.

“We’re all capitalists,” Luria, head of technology research at D.A. Davidson, said in an interview with CNBC’s “Squawk Box.” “We don’t want government to intervene and own private enterprise, but this is national security.”

Bloomberg reported Thursday that the Trump administration is considering having the U.S. government take a stake in Intel.

The news sent the chipmaker’s shares climbing, and the stock closed nearly 3% higher Friday. Intel wrapped the week up 23%.

Intel previously declined to comment on the report.

Luria said such a deal is needed to revive Intel and reduce the country’s reliance on companies like Samsung and Taiwan Semiconductor Manufacturing Co. to manufacture chips. President Donald Trump has called for more chips and high-end technology to be made in the U.S.

How the White House could structure such an intervention is still in question. Bloomberg reported Friday that the administration has discussed using funds from the CHIPS Act.

Intel received $7.9 billion from the Department of Commerce through the CHIPS Act, and it was awarded roughly $3 billion under the CHIPS Act for the Pentagon’s Secure Enclave program.

“Intel has had many opportunities over decades to get it right, and it hasn’t. So we need to intervene,” Luria said. “The government’s going to come in and it’s going to give Intel unfair advantages, and if it’s going to do that, it wants a piece of the business.”

Intel CEO Lip-Bu Tan met with Trump at the White House on Monday after the president called for his resignation based on allegations that he has ties to C
Click to expand...

The companion video interview is interesting and even a bit funny. I wish CNBC had asked Mr. Gil Luria, head of technology research at D.A. Davidson, to disclose his company’s holdings and client advisory positions related to Intel stock.

 
Daniel Nenni said:
I will respond to this in more detail on Monday. While I appreciate the media support Annie Palmer has no idea what she is writing about.

The CHIPs Act was valued at $52.7B but the actual cash awarded thus far is only about $4B. For the cash to be released the recipients must reach milestones and continue to be qualified for the CHIPs Act. Hopefully the Intel award can be renegotiated. The same goes for other awards (Samsung for sure).

Intel was awarded close to $11B ($7.865B commercial and $3B Secure Enclave) with up to $11B in loans. Only a small portion (about $2B) of that has been paid out thus far. The 25% tax credit is in addition to those amounts and scales with Intel’s qualifying capex.

Hopefully someone qualified takes a close look at this program and reallocates money to support Intel. That seems to be the quickest way for the USG to help Intel without actually taking a stake in the company.
Click to expand...

Intel didn't take the proposed $11 billion Chips Act loan.
 
Daniel Nenni said:
I will respond to this in more detail on Monday. While I appreciate the media support Annie Palmer has no idea what she is writing about.

The CHIPs Act was valued at $52.7B but the actual cash awarded thus far is only about $4B. For the cash to be released the recipients must reach milestones and continue to be qualified for the CHIPs Act. Hopefully the Intel award can be renegotiated. The same goes for other awards (Samsung for sure).

Intel was awarded close to $11B ($7.865B commercial and $3B Secure Enclave) with up to $11B in loans. Only a small portion (about $2B) of that has been paid out thus far. The 25% tax credit is in addition to those amounts and scales with Intel’s qualifying capex.

Hopefully someone qualified takes a close look at this program and reallocates money to support Intel. That seems to be the quickest way for the USG to help Intel without actually taking a stake in the company.
Click to expand...
Look forward to reading this.

I'd really like to understand the case why the US government should not get an equity stake in Intel in return for handing over several $10bns of cash. If it's an equity investment, any normal investor would expect that. If it's a loan, you'd expect interest payments. So there are really two fundamental questions to check off (in my mind) before signing off this degree of funding:

1) Is any financial return expected ? If so, in what timescale ? Should this be measured in terms of the wider economic benefit to the US economy and consumers rather than Intel P&L ?

2) What degree of control (if any) should the US government have in what Intel does ?

On point 2), my gut reaction is "none". Even in normal times, I'd be sceptical about their decision making ability and judgement. And these are not normal times ! But investment without some influence and control isn't always a recipe for success either.
 
You must log in or register to reply here.
Back
Top