US to take about 10% stake in Intel via CHIPS Act funds

The United States government is poised to take about a 10% stake in Intel, converted from grants Intel was promised under the CHIPS and Science Act, a move officials say would advance national security aims by strengthening domestic chip production while giving taxpayers a tangible stake in a pivotal technology company. The investment, valued at roughly $8.9 billion for the shares and supported by an additional $3.2 billion linked to a separate Secure Enclave program, would bring total government support to just over $11 billion in Intel’s favor. The government would hold nonvoting stock and would not obtain a seat on Intel’s board, though a warrant could allow an additional up-to-5% stake under certain conditions.

The talks come amid a broader push to rebuild and shield the U.S. semiconductor ecosystem from dependence on foreign suppliers. The CHIPS Act, enacted in 2022, authorized hundreds of billions in incentives to spur domestic research, development and fabrication. Intel has been a major recipient, with billions already disbursed or committed to support new manufacturing facilities in the United States, including a multibillion-dollar expansion program that has faced...