Intel said that receiving a share of the US government in the amount of 10% may create threats to the company’s business. We are talking about risks of reducing international sales, as well as possible restrictions in obtaining new state grants.
The federal authorities decided to convert previously allocated grants into Intel shares. The transaction includes 5.7 billion dollars of unpaid funds under the Chips ACT program and another 3.2 billion dollars allocated for the Secure Enclave project. According to the company, Chips ACT obligations will be considered executed, with the exception of financing this separate program. Closing the transaction is expected on August 26.
Intel indicated that the presence of a major shareholder represented by the US government can lead to additional restrictions abroad. In particular, the company may encounter the actions of regulatory authorities and restrictions within the framework of subsidies in other countries. In 2024, 76% of Intel revenue accounted for sales outside the United States, while China provided almost a third of the income.
The company noted that the publication of shares for the state at a price below the market will lead to a decrease in the shares of current shareholders. In addition, the influence of the government on corporate decisions can limit the integration of Intel transactions that are beneficial for private investors.
