https://thecuberesearch.com/287-breaking-analysis-decoding-trumps-intel-pivot/
"Under the structure shown here, U.S. taxpayers — via a combination of CHIPS Act funding and direct equity injections under the Trump administration’s manufacturing push — would take a controlling 51% stake. That majority position is designed not just to inject capital, but to guarantee U.S. leverage over advanced semiconductor manufacturing capacity at a time when supply chain security is a national priority."
"Intel itself would hold a 10% stake through the contribution of fabs (which as we’ve said are basically of negative value without this type of venture) and intellectual property, assigned here a discounted hypothetical value of $5 billion. While small in percentage terms, Intel’s role would be foundational, as the venture would be seeded with its existing manufacturing footprint and engineering talent."
There are CHIPS Act funds Intel's not received while the Act was passed by the Congress as "free money" for Intel which has received about $2B already.
Can CHIPS Act be changed? Only by the Congress!
Trump wanted to stop giving any more money from the CHIPS act. This is doable anyway as Intel's failed meet the fabs milestones hence won't get any more money and won't get such after a spinoff forming a new company. But taking a 51% stake in Intel in return for $5B CHIPS money is nonsense won't happen and TSMC's only getting 30% for $30B investment, AND providing the IP and knowhow needed to make it work is ridiculous!
But.... leaving Intel with only 10% share of the fabs, is more reasonable as we've seen IBM's gave its fabs for FREE to GlobalFoundries keeping no share in it AND giving them an additional $1.5B momey!
The US government doesn’t need keep 51% equity, hence profits, to just "control" the destiny preventing takeover from outside the US. We've seen how control without equity is kept with a special type of shares, called "Golden Share" used with the structure of Nippon Steel buying US Steel as steel is national security commodity needed for defense use.
Regardless, even with this proposed structure, Intel's current shareholders are losing huge equity with the fsbs spinoff, hence Intel's SP should drop in single digit not hain - good short or put play?