US takes a 10 percent stake in Intel

The US government has become Intel’s largest shareholder by acquiring a 9.9 percent stake for 8.9 billion dollars, funded by converting previously awarded but undisbursed Chips Act grants. The government’s shareholding is strictly passive, with no board seats, voting or informational rights, and limited ability to diverge from the company’s board decisions. The stake also comes with a five-year warrant to acquire up to an additional 5 percent of Intel, exercisable only if the chipmaker’s foundry unit falls below 51 percent ownership.

Despite previous rumors, the Trump administration reportedly won’t seek a stake in other companies that have been awarded Chips Act subsidies, including Micron and TSMC, as long as these firms commit to increasing their investments in the US. Intel has recently pushed back the construction of an Ohio manufacturing site to 2030 and announced plans to cut 15 percent of its workforce.