Intel received $5.7 billion in CHIPS Act funding as part of a deal that gives the US government a 10% stake in the struggling chipmaker, the company said.
Intel finance chief David Zinsner said the company got the cash infusion Wednesday and also hinted that it might seek other external investments during an investment conference Thursday.
“There’s likely going to be some opportunity for outside investors in foundry, and that will probably be our second opportunity to raise cash to fund the growth on the foundry side,” Zinser said.
Last month, Intel reported second-quarter earnings that beat Wall Street estimates, but its shares plunged 8% due to concerns around its foundry unit, which manufactures chips for other companies.
Meanwhile, the company is facing pressure from the White House to hand over a sizable stake in the company.
White House press secretary Karoline Leavitt said Thursday that the details are still “being ironed out by the Department of Commerce.
“The T’s are still being crossed, the I’s are still being dotted,” Leavitt said. “It’s very much still under discussion.”
In a corporate filing Monday, Intel warned that a deal with the US government could result in “adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors.”
“There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company,” it added.
Trump announced the deal with Intel soon after meeting with the firm’s CEO Lip-Bu Tan – and backing off his earlier calls for the boss to immediately resign.
The president had demanded Tan step aside on the heels of a letter sent to Intel’s board by Sen. Tom Cotton (R-Ark.), who accused Tan of having ties to the Chinese military and Communist Party.
Trump reversed course a few days later after meeting with Tan, alongside Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent.
Tan, who was born in Malaysia and grew up in Singapore, took the helm at the embattled chipmaker after Intel ousted Pat Gelsinger following dismal earnings and several rounds of layoffs.
Intel was awarded $8.5 billion from the Biden-era CHIPS Act last year under the Secure Enclave program, a national security initiative to make microchips for defense and intelligence applications.
The funding was later slashed by more than $600 million to about $7.85 billion but Intel still ranks as one of the top recipients of federal funding.
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