Intel Signals Risks After U.S. 10 Percent Stake Acquisition
(MENAFN) Intel warned Monday that the Trump administration’s purchase of a 10% ownership in the company could disrupt its global operations and trigger “adverse reactions.”
In a filing with the Securities and Exchange Commission (SEC), Intel revealed that “Sales outside the US accounted for 76% of the Company’s revenue for the fiscal year ended December 28, 2024. Having the US Government as a significant stockholder of the Company could subject the Company to additional regulations, obligations or restrictions, such as foreign subsidy laws or otherwise, in other countries.”
The company highlighted the unprecedented nature of a U.S. government stake at this level, making it challenging to predict all consequences. Intel cautioned, “There could be 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.”
Intel further raised concerns about the volatility of Washington’s political landscape, warning that it “might make the agreement questionable or null and void and put present and future stockholders at risk.”
The White House confirmed last Friday it was acquiring a 10% stake in Intel, with part of the approximately $8.9 billion investment funded through grants from the CHIPS Act, and the rest drawn from other government programs aimed at supporting secure chip manufacturing.
Intel is slated to receive an additional $5.7 billion from the CHIPS Act program, adding to $2.2 billion already received. Another government initiative contributed $3.2 billion, bringing total government support to $11.1 billion.
Trump described the agreement as “a great Deal for America” and emphasized that the development of advanced chips “is fundamental to the future of our Nation.”
On Monday, Trump added he would continue to secure deals like this “all day long.” He also stated, “I will also help those companies that make such lucrative deals with the United States.”
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