Overview

• Intel said the government purchased 433.3 million common shares at $20.47 each for a 9.9% holding funded by $5.7 billion in unpaid CHIPS awards plus $3.2 billion from the Secure Enclave program.
• Including $2.2 billion previously disbursed, total federal support tied to Intel now equals about $11.1 billion.
• Intel characterized the ownership as passive with no board seat or special information rights, and the government agreed to vote with the board on shareholder matters with limited exceptions.
• The agreement includes a five-year warrant at $20 per share for an additional 5% stake, exercisable only if Intel ceases to own at least 51% of its foundry unit.
• Shares rose roughly 5.5% Friday after Commerce Secretary Howard Lutnick confirmed the deal, following a $2 billion SoftBank investment and sparking debate over legal authority and precedent for such interventions.