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10h ago

U.S. Takes 9.9% Stake in Intel in $8.9 Billion Equity Deal

The White House converted unpaid semiconductor awards into equity to secure taxpayer upside, signaling a national‑security focus on domestic chipmaking.

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Overview

  • Intel said the U.S. bought 433.3 million common shares at $20.47, funded by $5.7 billion in unpaid CHIPS Act grants plus $3.2 billion from the Secure Enclave program.
  • Counting $2.2 billion already disbursed, total federal support linked to Intel now stands at roughly $11.1 billion for U.S. manufacturing expansion.
  • The government’s ownership is described as passive with no board seat or special information rights, and it agreed to vote with Intel’s board on most shareholder matters.
  • The deal includes a five‑year warrant to purchase an additional 5% at $20 per share, exercisable only if Intel’s control of its foundry unit falls below 51%.
  • Intel shares rose about 5–6% after the announcement as lawmakers and analysts questioned the precedent and potential market risks; SoftBank also disclosed a separate $2 billion investment this week.