Intel receives $5.7 billion from US government in new support agreement
Intel announced that it has already received the first tranche of $5.7 billion from the US government as part of the arrangements for government participation in the company.
Intel announced that it has already received the first tranche of $5.7 billion from the US government as part of the arrangements for government participation in the company.
The deal was discussed back in July, when the Trump administration said the US government could buy a stake in Intel to maintain control of the strategic chipmaker. Now, according to TechRadar, the first steps towards implementing this deal have been taken.
According to Intel CFO David Zinsner, the company will transfer 10% of the shares to the US government, and has also agreed to a 5% option if its share in its own chip production (foundry) drops below 51%. The White House expects that such participation will help restore Intel’s profitability and return billions to the American economy. At the same time, according to the press service, the deal has not yet been finally approved and is being finalized by the Department of Commerce.
Despite the multi-billion dollar support, the company is also preparing for large-scale layoffs. New CEO Lip-Bu Tan plans to reduce the staff to 75,000 employees, while a few years ago Intel had more than 120,000 employees. In the second quarter of 2025, revenue remained almost at the same level as last year — $12.9 billion. The company’s shares have grown by 21,5% since the beginning of the year, but in total they have more than halved in five years.
The terms of the deal see the government become not just a shareholder but a de facto partner in the strategic management of Intel’s foundry business. This should strengthen the US’s competitiveness against the backdrop of growing dependence on Asian manufacturers, particularly TSMC. At the same time, the company itself fears that government involvement could make it more difficult to secure international contracts.
Previously, dev.ua wrote about how Intel CEO Lip-Bu Tan commented on Donald Trump’s public demand that he leave his position due to alleged ties to China. He stated that the US has been his home for over 40 years and assured his readiness to cooperate with the government.
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