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last mo.

U.S. Weighs Converting CHIPS Aid Into 10% Intel Stake as SoftBank Buys $2 Billion Slice

Officials describe a non-voting equity conversion intended to secure U.S. chip production for a taxpayer return.

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Overview

  • White House discussions center on turning roughly $10–10.5 billion in CHIPS Act subsidies into about a 10% stake in Intel, with no agreement finalized.
  • Commerce Secretary Howard Lutnick says the government should receive equity for previously committed funds while avoiding governance rights at the company.
  • Treasury Secretary Scott Bessent says any participation would aim to stabilize U.S. manufacturing without directing Intel’s operations or compelling customers to buy its chips.
  • SoftBank agreed to purchase about $2 billion of Intel shares, roughly 2% of the company, as Intel stock swung higher on the news.
  • Intel’s financial and operational setbacks—including 2024 losses, delays at its Ohio fabs, and limited foundry traction—frame the talks, and key legal and governance details remain unresolved.