Overview

• Washington is set to purchase 433.3 million Intel shares at $20.47 each, an $8.9 billion position funded by previously awarded CHIPS Act grants.
• Intel’s SEC filing says the Commerce Department agreed that, to the maximum extent allowed, the company’s CHIPS obligations will be considered discharged and that Commerce must vote its shares for board‑backed nominees and proposals.
• The arrangement effectively removes conditions tied to the grants, including labor, apprenticeship, buyback, and excess‑profit provisions, prompting warnings that subsidized fabs could be located outside the United States.
• Reaction spans the spectrum, with Sen. Elizabeth Warren calling the move an extremely risky, strings‑free giveaway, Sen. Bernie Sanders endorsing taxpayer returns in principle, and Republicans such as Rand Paul and Todd Young challenging the legality and precedent.
• The White House frames the stake as a national‑security push to onshore chips, has floated a sovereign‑wealth‑style approach for future deals, and included a provision that could add 5% more ownership if Intel reduces control of its foundry business.