The government will take a 10% stake in Intel through an $8.9 billion investment in common stock. The $8.9 billion comprises $5.7 billion awarded-but-not-paid under the CHIPS Act and $3.2 billion from the Secure Enclave program, representing previously awarded grants rather than additional government funding. Intel previously received $2.2 billion in CHIPS funding and sought an additional $850 million reimbursement that remained unpaid. President Trump said the United States paid nothing for the shares and called the arrangement a great deal, while some bankers and lawyers say the CHIPS Act may not authorize converting grants to equity, raising legal uncertainty.
Intel officially announced an agreement with President Donald Trump's administration on Friday afternoon, following Trump's statement that the government would be taking a 10% stake in the struggling chipmaker. While Intel says the government is making an "$8.9 billion investment in Intel common stock," the administration does not appear to be committing new funds. Instead, it's simply making good on what Intel described as "grants previously awarded, but not yet paid, to Intel."
Specifically, the $8.9 billion is supposed to come from $5.7 billion awarded-but-not-paid to Intel under the Biden administration's CHIPS Act, as well as $3.2 billion also awarded by the Biden administration through the Secure Enclave program. In a post on his social network Truth Social, Trump wrote, "The United States paid nothing for these shares." Nonetheless, he described this as "a great Deal for America and, also, a great Deal for INTEL."
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