The Trump administration has finalized a deal with Intel that effectively blocks the semiconductor giant from selling a majority stake in its struggling foundry business unit. Under the agreement, the U.S. government, which now holds a 10% equity stake in Intel following an $8.9 billion investment, can increase its ownership if Intel reduces its stake in the foundry unit below 51% within the next few years[1][2].
Intel's Chief Financial Officer, David Zinsner, revealed det...
Intel's Chief Financial Officer, David Zinsner, revealed details of the arrangement at a Deutsche Bank conference, explaining that the deal includes a five-year warrant enabling the government to acquire an additional 5% of Intel at $20 a share if Intel spins off or sells majority control of the foundry unit. Zinsner noted that this clause aligns with the government's goal of preventing Intel from divesting the division and that he expects the warrant to expire unused. As part of the deal, Intel received $5.7 billion in cash, sourced from previously awarded but unpaid grants under the U.S. CHIPS and Science Act[1].
The foundry unit, which produces custom chips for external c...
The foundry unit, which produces custom chips for external clients, has been a significant financial drain on Intel, reporting an operating loss of $3.1 billion in the second quarter. There has been pressure from analysts, board members, and investors to spin off or sell the unit, a move that seemed possible before the sudden retirement of Pat Gelsinger, the former CEO and architect of Intel Foundry, in December[1].
The Trump administration's $8.9 billion investment, which in...
The Trump administration's $8.9 billion investment, which includes $5.7 billion from CHIPS Act grants and $3.2 billion from the Secure Enclave program, underscores its commitment to strengthening domestic semiconductor manufacturing and technology leadership. Intel has reaffirmed its obligations to deliver secure semiconductors to the Department of Defense and views the government's stake as a strong endorsement that may help attract customers to its foundry services[2][3].
This deal demonstrates the U.S. government's strategic inter...
This deal demonstrates the U.S. government's strategic interest in maintaining control over critical semiconductor manufacturing capabilities, even as Intel faces internal challenges with its foundry business. The restrictions on divestiture aim to ensure that the foundry unit remains under Intel's majority ownership, supporting national security and industrial policy goals[1][2].
🔄 Updated: 8/28/2025, 10:11:04 PM
The Trump administration's deal effectively blocks Intel from selling a majority stake in its foundry unit by requiring Intel to retain at least 51% ownership, with a five-year warrant allowing the U.S. government to acquire an additional 5% equity if this condition is not met. Intel CFO David Zinsner highlighted that the deal includes $5.7 billion in cash from U.S. CHIPS Act grants and emphasized the government’s intent to prevent Intel from spinning off its foundry business, despite the unit’s $3.1 billion operating loss in Q2[1]. Industry experts note this move forces Intel to maintain control over its struggling foundry segment amid calls from analysts and investors to spin it off[1].
🔄 Updated: 8/28/2025, 10:21:06 PM
The Trump administration’s new deal effectively blocks Intel from selling or spinning off a majority stake in its foundry unit by requiring the company to maintain at least 51% ownership, with a five-year warrant allowing the U.S. government to increase its equity by 5% at $20 a share if Intel falls below this threshold. Intel’s CFO David Zinsner revealed the company received $5.7 billion in cash as part of this deal, but the foundry unit continues to operate at a loss, posting a $3.1 billion operating income deficit in Q2, underscoring the challenge Intel faces in balancing government conditions with business realities. This arrangement ensures U.S. control over a critical semiconductor manufacturing segment despite investor and analyst pressure to
🔄 Updated: 8/28/2025, 10:31:14 PM
The Trump administration's deal with Intel restricts the company from selling a majority stake in its foundry unit by requiring Intel to maintain at least 51% ownership, or face the U.S. government exercising a five-year warrant to acquire an additional 5% equity at $20 per share, reinforcing government control over this struggling division[1]. Intel Foundry, which reported a $3.1 billion operating loss in Q2, is effectively mandated to remain under Intel's majority control despite analyst and investor pressure to spin it out, reflecting strategic tensions between financial viability and national interests in semiconductor manufacturing[1]. The deal also included a $5.7 billion cash infusion from the remaining CHIPS Act grants, bolstering Intel’s funding but embedding
🔄 Updated: 8/28/2025, 10:41:15 PM
The Trump administration reached a deal blocking Intel from selling a majority stake in its foundry unit by securing an $8.9 billion U.S. government investment in Intel common stock, giving the government nearly a 10% ownership stake, funded through CHIPS Act grants and the Secure Enclave program[1][2]. This government equity stake, intended to bolster U.S. semiconductor manufacturing, has sparked political controversy, with some GOP lawmakers warning it represents a step toward socialism, though top House and Senate Republican leaders have remained silent on the matter[3]. Intel has cautioned in regulatory filings that the government’s stake may limit its ability to raise capital or pursue future strategic transactions beneficial to shareholders[2].
🔄 Updated: 8/28/2025, 10:51:06 PM
The Trump administration's deal with Intel requires the company to retain at least **51% ownership of its foundry unit**, preventing Intel from selling a majority stake in this business, which reported a **$3.1 billion operating loss in Q2**[1]. The agreement includes a five-year warrant allowing the government to take an additional 5% equity at $20 per share if Intel's stake falls below 51%, effectively penalizing any spin-off or sale of the unit[1]. Intel received **$5.7 billion in cash** from the deal, funded by remaining CHIPS Act grants, while the government holds a nearly **10% stake overall** in Intel common stock worth $8.9 billion[1][2].
🔄 Updated: 8/28/2025, 11:01:17 PM
The Trump administration’s recent deal with Intel prevents the company from selling or spinning off a majority stake in its foundry unit by requiring Intel to maintain at least 51% ownership or face the U.S. government exercising a warrant to increase its equity stake by an additional 5% at $20 a share. Intel received $5.7 billion in cash from remaining CHIPS Act grants as part of this arrangement, but its foundry business continues to lose money, reporting a $3.1 billion operating loss in Q2 2025[1]. Intel CFO David Zinsner confirmed this structure was intended to keep the foundry unit under company control, aligning with government priorities to maintain a strong domestic semiconductor manufacturing base[1].
🔄 Updated: 8/28/2025, 11:11:11 PM
The Trump administration’s deal blocking Intel from selling a majority stake in its foundry unit has sparked mixed public reaction, with some consumers and industry observers expressing frustration over the government forcing Intel to keep a money-losing unit that reported a $3.1 billion operating loss in Q2 2025. Analysts and investors had urged Intel to spin off the struggling foundry business, but the deal’s warrants effectively penalize such a move, leading to concerns about government overreach and potential inefficiencies. Meanwhile, Intel’s CFO David Zinsner noted that the $5.7 billion cash infusion from the deal is a lifeline, but acknowledged the government’s clear intent to keep the foundry under majority American control, reflecting national security priorities[
🔄 Updated: 8/28/2025, 11:21:12 PM
The Trump Administration secured a deal to convert $8.9 billion in previously awarded CHIPS Act grants into a 10% government equity stake in Intel, effectively blocking Intel from selling a majority stake in its foundry unit without government approval[1][3]. This move reflects a significant regulatory intervention by the federal government in a major semiconductor company, with the government becoming a non-voting but influential shareholder, raising concerns among some Republicans who view it as a step toward socialism[2][3]. Congressional leaders have remained mostly silent, while Intel acknowledges potential regulatory implications that could limit future grants and affect global sales[3].
🔄 Updated: 8/28/2025, 11:31:17 PM
The Trump administration's deal prevents Intel from selling or spinning off its foundry unit by requiring Intel to maintain at least 51% ownership, with a five-year warrant allowing the government to increase its stake by 5% if this condition is not met[1]. This blocks potential moves to offload the struggling foundry business, which reported a $3.1 billion operating loss in Q2, thereby maintaining Intel's presence in custom chip manufacturing amid a competitive landscape marked by calls to streamline operations[1]. The U.S. government’s $8.9 billion equity investment, partly from CHIPS Act grants, strengthens its influence over Intel’s strategic decisions during a critical period for semiconductor leadership[2][3].
🔄 Updated: 8/28/2025, 11:41:07 PM
The Trump administration's $8.9 billion investment deal in Intel includes a key provision that **blocks Intel from selling a majority stake in its foundry unit**, aiming to maintain U.S. control over critical semiconductor manufacturing capabilities[2][4]. This condition has drawn international attention as it reinforces U.S. efforts to secure semiconductor supply chains amid rising geopolitical tensions, impacting global chip markets and prompting reactions from allied nations concerned about technology security and supply stability[4]. The deal underscores the U.S. government's strategic push to keep semiconductor manufacturing domestic, influencing international trade and investment dynamics in the tech sector[1][2].
🔄 Updated: 8/28/2025, 11:51:14 PM
Experts view the Trump administration’s $8.9 billion investment deal in Intel as a strategic move to maintain U.S. leadership in semiconductor manufacturing, notably by **blocking Intel from selling a majority stake in its foundry unit**, a critical asset for domestic chip production[4][2]. Industry analysts highlight that this restriction ensures Intel’s foundry capabilities remain under U.S. control amid rising geopolitical tech tensions, with Intel CEO Lip-Bu Tan emphasizing the deal supports "historic investments" in national security and technology leadership[1][2]. The U.S. government’s stake, funded partly by CHIPS Act grants, though non-voting, effectively aligns Intel’s expansion with national priorities, reinforcing expert consensus that this prevents foreign or private consolidation risks i
🔄 Updated: 8/29/2025, 12:01:17 AM
The Trump administration's deal blocks Intel from selling a majority stake in its foundry unit by requiring the company to retain at least 51% ownership, with the U.S. government holding a 10% equity stake valued at $8.9 billion as part of an investment tied to the CHIPS and Science Act[1][2][3]. This move, intended to secure U.S. control over a critical semiconductor supply chain, has drawn international attention as Intel’s foundry unit incurs heavy losses ($3.1 billion in Q2), complicating global chip manufacturing dynamics and raising concerns among foreign investors about U.S. intervention in the global semiconductor market[1][2].
🔄 Updated: 8/29/2025, 12:11:14 AM
The Trump Administration secured a historic deal to block Intel from selling a majority stake in its foundry unit by making an $8.9 billion investment in Intel common stock, funded through remaining CHIPS Act grants, giving the U.S. government a 10% ownership stake in the company[1][2]. This move is aimed at safeguarding American semiconductor manufacturing and national security, though it has sparked controversy among some Republicans who view government ownership in a private company as a step toward socialism[2]. Key GOP leaders, including House Speaker Mike Johnson and Senate Majority Leader John Thune, have remained silent on the deal amid ongoing debate[2].
🔄 Updated: 8/29/2025, 12:21:16 AM
The Trump administration's deal blocks Intel from selling or spinning off a majority stake in its foundry unit by requiring Intel to maintain at least 51% ownership or face the U.S. government taking an additional 5% equity, reinforcing U.S. control over this strategic semiconductor asset[1]. This intervention, paired with an $8.9 billion U.S. government investment (comprising $5.7 billion in CHIPS Act grants and $3.2 billion from the Secure Enclave program), signals a strong U.S. stance to bolster domestic chip manufacturing amid global competition[2][3]. Internationally, this move underscores increasing U.S. efforts to secure semiconductor supply chains as geopolitical tensions rise, prompting global tech and investment watchers to reass
🔄 Updated: 8/29/2025, 12:31:17 AM
The Trump administration's deal to give the U.S. government a nearly 10% stake in Intel, in exchange for $8.9 billion in grants and investments, is currently being implemented with active involvement from the Department of Commerce, which is finalizing details of the arrangement including a $3 billion Secure Enclave award from the Department of Defense[1][2]. White House press secretary Karoline Leavitt described the deal as a "creative solution" and confirmed that the regulatory process is still ongoing, with some components yet to be fully executed[1]. This government ownership stake is intended to ensure Intel retains control over its foundry business, aligning with national security and supply chain resilience priorities[1][2].