President Trump is giving Intel nearly $9 billion for a 9.9% stake, but analysts doubt it will save their chipmaking business. CEO Lip Bu Tan warns they may exit if they don’t secure customers for their advanced chips. Intel’s struggles have allowed competitors like TSMC and Nvidia to take the lead.

The government investment, part of the CHIPS Act, won’t be enough to make Intel’s foundry arm profitable without customer commitments. The deal gives the U.S. a 17.5% discount on Intel shares, making them the largest shareholder. Intel must prove it can produce advanced chips and attract customers to succeed.

Intel’s stock price rose after news of the government’s equity stake, but fell in post-market trading when details of the deal were disclosed. Trump’s change of heart about CEO Tan shows a desire to boost domestic production. Intel plans to expand U.S. factories with over $100 billion in investments.

The government’s investment will help Intel build factories and succeed, but concerns remain about governance implications. The U.S. will receive a five-year warrant for an additional 5% of Intel stock if they don’t own at least 51% of the foundry business. Some worry about potential impacts on shareholder interests.

Read more at Yahoo Finance: Did Trump save Intel? Not really, analysts say.