US government stake in Intel could cut 76% of company's foreign revenue

Intel executives told Reuters on Tuesday they were concerned that the new ownership structure could hurt international sales, limit the company's access to future grants and expose the business to new regulatory constraints after the Trump administration decided to take a 10% stake in the company in exchange for converting federal grants into shares.

The move, described as an extraordinary government intervention in the US corporate market, raises questions about the future of the largest US semiconductor manufacturer and the government's influence over its strategic decisions.

According to the source, in documents filed with regulators, Intel said Washington would buy $8.9 billion in shares, an amount that came from unpaid funds under the CHIPS Act and previous allocations for the Secure Enclave program.

With the closing of the transaction, which will take place today, August 26, the company's obligations under the CHIPS Act will be considered fulfilled, except for those related to the Secure Enclave, but the risk remains that other public entities will request the conversion of grants into equity or postpone future financing. The situation is all the more delicate since 76% of Intel's revenue in 2024 came from outside the United States, and China contributed almost a third, which means that any perception of government control could trigger additional restrictions in foreign markets.

At the same time, the company announced that the shares intended for the government will be sold at a reduced price, $ 20.80, below the level of $ 24.80 recorded at the close of the stock exchange, which generates a dilution of the holdings of current shareholders and reduces their influence over decisions. In return, Washington will acquire a powerful position, with a direct impact on the company's regulations and major transactions.

Political tensions are adding to the uncertainty, especially after President Donald Trump asked CEO Lip-Bu Tan to resign over alleged ties to Chinese companies, only to publicly praise him. The deal puts Intel at a crossroads, caught between geopolitical pressures and the need to protect its position in the global semiconductor market, with consequences that could shape the industry for years to come.