Trump

Washington Grabs 10% Stake, Trump Emerges as Intel’s New Boss

Posted on by Techtime

 

 

By Yohai Schwiger

After days of tense negotiations, Intel announced on Friday that the U.S. government will acquire a 9.9% stake in the company, valued at $8.9 billion. While Intel presented it as a fresh investment, the reality is more nuanced: no new money is coming in. Instead, grants already promised under the Biden administration—$5.7 billion from the CHIPS Act and $3.2 billion from the Secure Enclave program—are being converted into direct equity.

In effect, Trump rewrote the rules after the fact. Instead of receiving cash grants as originally intended, Intel was forced to accept government ownership. The deal is unprecedented: at the outset, no such equity requirement existed. The shares were issued at $20.47 apiece—below the current market price of $24.80—making the U.S. government Intel’s largest shareholder, ahead of major investors Vanguard and BlackRock.

Under the agreement, Washington holds no direct management rights but must vote in line with the board’s recommendations, with limited exceptions. That makes the government a “passive” shareholder in name, yet with potential to influence corporate decisions in the future.

Trump’s Victory

The deal is being cast as a personal triumph for President Donald Trump and another showcase of his negotiating prowess. Just last week, Trump publicly demanded that CEO Lip-Bu Tan—who only recently took the helm—resign, citing close ties with China and potential conflicts of interest. The demand weakened Tan’s standing and left him cornered in negotiations. The compromise: Tan keeps his job, but the U.S. becomes Intel’s dominant shareholder.

Trump wasted no time in claiming the win. “He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion”, Trump said on Friday. The sarcastic tone turned the deal into not just a financial arrangement but also a political statement—reinforcing Trump as the ultimate victor and Intel as the subordinate.

Tan’s Defeat

For Tan, the episode is a major blow. He has been trying to drive a sweeping restructuring at Intel, with an emphasis on rebuilding the foundry business. But the public call for his resignation has shaken his authority inside and outside the company.

Recently, Tan unveiled a cost-cutting program alongside Intel’s Q2 earnings report and stressed a cautious approach to expanding production capacity in order to protect the company’s finances. He canceled projects in Europe and announced a pause in expanding Intel’s Ohio fabs—moves at odds with the administration’s stated goal of ramping up domestic manufacturing. Now, with Washington as Intel’s largest shareholder, the company may find itself pressured to resume the Ohio expansion to satisfy political demands. From here on, every quarterly report and strategic move will be scrutinized not only by investors and Intel’s board, but also by the U.S. government, now a de facto partner.

What It Means for Intel

Government backing brings obvious advantages: better odds of winning defense and federal contracts, regulatory favoritism, political support, and an image of stability that could attract more U.S. corporate customers. It also signals to Wall Street that Intel has a government safety net, potentially lowering its risk profile.

But the downside is real. Market watchers fear Washington may not remain a “passive” owner forever. Even a symbolic presence could evolve into real influence over strategy—blurring the line between corporate independence and state control.

The Death of the CHIPS Act as We Knew It

The Intel deal could set a precedent. If Washington can turn CHIPS Act grants into equity stakes, the same could happen to other companies—Micron, GlobalFoundries, even TSMC and Samsung’s U.S. operations. This fundamentally alters the nature of the CHIPS Act. What began as a straightforward subsidy program to incentivize semiconductor investment is morphing into a mechanism for government leverage, forcing companies to surrender ownership in exchange for support.

It’s worth remembering that Trump himself opposed the CHIPS Act when it was passed, calling it a waste of taxpayer money and vowing to repeal it. Instead of scrapping the law, he has reshaped it—transforming grants into equity stakes and turning the program into a direct instrument of ownership and control. For Intel and its peers, “free” money is no longer free.

SolarEdge Embraces Trump’s “America First” Policy

Posted on by Techtime

SolarEdge has strategically aligned itself with the new reality shaped by President Donald Trump’s “America First” agenda. Speaking on Thursday’s earnings call, following the release of its quarterly results, Company’s CEO Shuki Nir stressed that SolarEdge intends to anchor most of its production in the U.S., positioning the country as its primary manufacturing hub.

Nir pointed to the recently enacted federal tax law, known as the Big Beautiful Bill, as a key factor in the decision. The legislation grants a dedicated tax benefit for advanced manufacturing, locked in for the next seven years. “The law validates our multiyear strategy of bringing manufacturing to U.S. soil by preserving the tax benefit for the next seven years,” Nir said. “We intend to produce in the U.S. and distribute U.S.-made products both domestically and globally for many years to come.”

SolarEdge already operates manufacturing sites across several states: residential inverters in Texas, commercial inverters and power optimizers in Florida, and battery production in Utah. “We plan to ramp up production toward the end of the year to support exports,” Nir noted, without addressing whether the company will scale back output in Europe, Asia, or Israel.

While expanding its U.S. footprint, the company is also seeing signs of recovery in Europe. “Our pricing and promotional campaigns have shown early signs of success,” said Nir. “Most of our partners reached normal inventory levels toward the end of the second quarter, and we saw initial profits in Europe.” Still, he acknowledged that the company’s market share on the continent remains below historical levels, leaving room for growth.

On tariffs, SolarEdge expects the impact on profitability in the second half of the year to be milder than initially forecast—around 2%, compared to an earlier estimate of 4% to 6%. “We believe we can fully offset this impact in 2026, after pricing adjustments,” Nir said.

Strong Second Quarter Performance

SolarEdge reported a particularly strong second quarter for 2025, with broad improvement across nearly all operational and financial metrics. Revenue reached $289.4 million, up 32% from the previous quarter—marking the second consecutive period of both sequential and year-over-year growth, a sign of stabilization after a prolonged downturn.

Margins also improved. GAAP gross margin rose to 11.1% from 8% in Q1, while non-GAAP gross margin climbed to 13.1% from 7.8%. The company attributed the gains to higher sales volumes and operational efficiencies, though new U.S. tariffs still trimmed about one percentage point from profitability. Cash flow strengthened as well: net cash, after debt, stood at roughly $132 million—an increase of $19 million from year-end 2024—driven by prudent management, reduced inventory levels, and stronger operating cash flow.

For the third quarter, SolarEdge projects revenue between $315 million and $355 million. Non-GAAP gross margin is expected to reach 15% to 19%, including an estimated two-percentage-point drag from tariffs.

Nir expressed confidence in the company’s trajectory. “This was our second consecutive quarter of year-over-year and sequential revenue growth, along with margin expansion,” he said. “We are staying laser-focused on elevating our execution and advancing our strategic priorities, positioning SolarEdge for the opportunities we see ahead.”

With rising revenue, improving margins, stronger cash reserves, and a positive outlook for the next quarter, the company is signaling a return to growth momentum.