The United States acquired a roughly 10% ownership stake in Intel after converting previously allocated CHIPS and Secure Enclave funds into equity. Intel received $5.7 billion in unpaid CHIPS grants, $3.2 billion from the Secure Enclave program, and had already received $2.2 billion, totaling significant government support. The Secure Enclave funds target development of high-security chips for US government and military use. Intel's stock rose over 5%, valuing the government stake at about $11 billion. The funding aims to help Intel rebuild advanced domestic chip manufacturing, reduce reliance on Asian vendors, and bolster the CEO's position.
Intel and the government announced the deal late on Friday. Under it, Intel will get $5.7 billion in grants that officials had allocated but not yet paid under former President Biden's CHIPS and Science Act. The government gave Chipzilla an additional $3.2 billion under the Secure Enclave program, which is supposed to be used to develop high-security chips for US government and military use. Intel has already received $2.2 billion in CHIPS grants so far, giving it quite the war chest.
Indeed, Intel's shares closed the day up more than 5%, giving the company a market cap of nearly $110 billion, which would make the US government's stake worth about $11 billion. That said, the government did not pay nothing for the shares, although it used money that had already been allocated under previous programs, so no new money was spent.
Collection
[
|
...
]