American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Intel accelerates CHIPS act funding, receives $5.7B ahead of schedule

by admin August 30, 2025
August 30, 2025
Intel accelerates CHIPS act funding, receives $5.7B ahead of schedule

Intel has secured $5.7 billion in accelerated CHIPS Act funding from the US government.

This is a significant step intended to fast-track the company’s expansion of domestic semiconductor manufacturing amid intense geopolitical and economic pressures.

The payment, which arrived ahead of schedule, reflects a sweeping renegotiation of terms between Intel and the Department of Commerce as they scrapped certain project milestones and granted the government a near-10% equity stake in Intel.

The move underscores an effort to bolster the US chip sector and maintain American leadership in advanced technology.

Details of the accelerated funding deal

The agreement, revealed on August 28, 2025, stems from previous grants Intel had been awarded but had not yet received under the U.S. CHIPS and Science Act.

By renegotiating the deal, Intel gained immediate access to $5.7 billion, while formally issuing 274.6 million shares to the government with additional options if certain conditions arise.

The revised terms loosened several requirements: Intel no longer has to meet earlier project benchmarks to draw the funds as long as the company shows it already invested nearly $7.9 billion in eligible projects.

Government restrictions remain as the funds cannot be used for dividends or stock buybacks, nor can they support expansions in certain foreign countries or effect ownership changes with prohibited parties.

The deal aims to keep Intel’s foundry and contract manufacturing division under clear US control, with the government reserving warrants for further investments if Intel’s stake in the unit drops below 51%.

This $5.7 billion grant brings total federal support for Intel to $11.1 billion, including earlier tranches of CHIPS Act funds and the Secure Enclave defense initiative.

Implications for Intel and the US chip sector

The accelerated funding gives Intel greater flexibility and financial strength to expand and modernize US-based chip manufacturing at a time when global supply chains remain fragile and competition with China and other rivals is fierce.

Intel’s CFO David Zinsner emphasized the government’s equity investment is designed as a powerful incentive for the company to retain its crucial foundry business, supporting both economic goals and national security priorities.

The additional resources are expected to help Intel maintain momentum on projects totaling more than $100 billion in U.S. investments, spanning major sites in Arizona, Ohio, New Mexico, and Oregon.

Yet this landmark deal also raises questions about federal intervention and future oversight in the corporate sector.

By taking a direct equity stake, the government will wield influence not just over Intel’s manufacturing priorities but potentially over its broader business decisions.

This hybrid approach, which includes mixing massive grant funding, shares, and strings attached, may set a precedent for future private-public partnerships in high-tech industries.

The post Intel accelerates CHIPS act funding, receives $5.7B ahead of schedule appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
EUR/USD forecast ahead of US PCE and NFP inflation data
next post
JPM says ignore earnings noise and buy Marvell stock like there’s no tomorrow

Related Posts

Is the SPDR GLD ETF a buy as...

November 25, 2024

Crypto market snapshot, Dec 4: Bitcoin at $96K,...

December 4, 2024

Renewable energy demand could triple as electricity consumption...

July 26, 2024

Europe bulletin: Manchester synagogue attack aftermath, stocks close...

October 4, 2025

Sensex and Nifty 50 crash 5% as China’s...

April 7, 2025

Oracle, OpenAI, SoftBank plan $500B AI infrastructure deal...

January 22, 2025

Tap-to-earn gaming surges with 950M Telegram users driving...

September 15, 2024

Kia’s EV sales soar 74% in US, hitting...

January 4, 2025

What to expect from Apple’s 2025 event: slimmer...

September 8, 2025

Standard Chartered to repurchase $1.5B in shares after...

February 21, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Europe bulletin: Manchester synagogue attack aftermath, stocks close higher

      October 5, 2025
    • Evening digest: Trump sets deadline for Hamas, Canada’s slowdown, BTC rebounds

      October 5, 2025
    • Iran executes six people for alleged links to Israel, state media reports

      October 5, 2025
    • US digest: Trump’s Hamas ultimatum, government shutdown stalemate continues

      October 5, 2025
    • Japanese stocks may extend record run as Takaichi win revives ‘Abenomics’

      October 5, 2025

    Categories

    • Business (4,191)
    • Investing (2,958)
    • Latest News (2,080)
    • Politics (1,536)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved