Overview

• Bloomberg reported that the White House is discussing turning some or all of Intel’s $10.9 billion in CHIPS Act awards into an equity stake of roughly 10%, valued around $10–$10.5 billion.
• No agreement has been announced, Intel and the White House declined to comment, and Reuters said it could not immediately verify the report.
• Because CHIPS grants are milestone-based, with about $2.2 billion paid to Intel by January, an equity swap would likely accelerate funding rather than increase total federal support.
• Intel shares slipped more than 3% on Monday after a roughly 23% surge last week on initial headlines about potential federal backing.
• Separately, SoftBank agreed to buy $2 billion of newly issued Intel stock at $23 per share, a stake just under 2% that would make it a top-10 shareholder.