Key facts
- Intel CEO Lip-Bu Tan stated the U.S. government's equity stake in the company will not result in interference in its business strategy.
- The U.S. government acquired a 10% stake in Intel for $11.1 billion.
- The stake was obtained in return for $11.1 billion in funding provided under the Chips Act.
- White House economic advisor Kevin Hassett clarified that the equity stake does not include voting rights or control.
- Treasury Secretary Scott Bessent said the U.S. government will not pressure companies to do business with Intel.
Intel CEO Lip-Bu Tan stated that the U.S. government's acquisition of a 10% equity stake in the chipmaker will not translate into interference in its business strategy. The government secured the stake for $11.1 billion, acquiring 433.3 million non-voting shares as part of the Chips Act, which aims to boost domestic semiconductor manufacturing.
White House economic advisor Kevin Hassett clarified that the equity stake does not confer voting rights or control over Intel's operations. He likened the transaction to a down payment on a sovereign wealth fund. Treasury Secretary Scott Bessent further assured that the U.S. government would not pressure companies to engage with Intel despite its investment.
Intel is slated to receive approximately $10.9 billion in grants under the bipartisan Biden-era CHIPS Act. The administration views this equity stake as a way to ensure a return for American taxpayers on government funding provided to critical industries.