Overview

• The government converted $5.7 billion in CHIPS Act funds and $3.2 billion from the Secure Enclave program into 433.3 million Intel shares at $20.47, a passive holding with no board rights.
• Deal terms include a five-year warrant to buy an additional 5% if Intel sells control of its foundry unit, and the U.S. is now Intel’s largest single shareholder.
• National Economic Council Director Kevin Hassett called the move “a down payment on a sovereign wealth fund” and said more transactions in other industries are likely.
• President Trump asserted he “paid zero” for the stake as Intel shares rose a few percent, while Republicans Rand Paul and Thom Tillis criticized the move and Bernie Sanders backed taxpayer upside.
• Legal experts are questioning whether the CHIPS Act allows equity conversions, and Intel warned in a securities filing that the arrangement could affect future grants, overseas sales and regulatory exposure with no stated timeline to sell the shares.