The U.S. government has taken a nearly 10% equity stake in Intel, marking a historic move to secure America’s semiconductor manufacturing capabilities.
The deal, valued at around $8.9 billion, combines funds from the CHIPS Act and defense programs.
Intel confirmed it has already received $5.7 billion in cash under the agreement. In return, Washington gains a passive stake with no board representation, although the Commerce Department will generally support Intel’s board decisions.
The deal also includes a five-year warrant allowing the government to increase its ownership by an additional 5% if Intel reduces its stake in its foundry business below 51%. This structure is designed to prevent Intel from divesting or spinning off its critical manufacturing arm.
If this article helped you, please consider supporting our work. Every small contribution keeps Abijita.com independent and running.
