Overview

• The U.S. is purchasing about 9.9% of Intel, or 433.3 million shares at $20.47 each, for roughly $8.9 billion, according to reports citing Reuters.
• Financing comes from $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from the Secure Enclave program converted into equity.
• Commerce Secretary Howard Lutnick said the transaction is completed and that the government now owns 10% of the company.
• In company disclosures, Intel warned the arrangement could dilute existing shareholder voting rights, constrain future deals, trigger litigation, and draw intensified political scrutiny.
• Intel also cautioned that reliance on overseas revenue exposes it to shifting U.S. trade policy and said it has not finished analyzing financial, tax, and accounting effects; the move follows other unconventional agreements such as revenue sharing on certain Nvidia sales to China.