Intel disclosed that the Trump administration has converted $5.7 billion in CHIPS Act grants into a 10% equity stake, making the U.S. government one of its largest shareholders. The deal aims to block a spinoff of Intel’s unprofitable foundry business, which lost $3.1 billion in the second quarter, according to Benzinga. The agreement includes a five-year warrant for an additional 5% stake if Intel’s foundry ownership falls below 51%. Intel received $5.7 billion in cash on Wednesday, but will continue seeking outside investors for the unit. The company plans to reduce its workforce to 75,000 and is targeting a key customer for its 14A manufacturing process next year. Despite beating Q2 earnings expectations, Intel shares fell 8% amid concerns over its foundry losses, though the stock remains up 24% year-to-date. The company also raised $2 billion in funding from SoftBank. Shares were down 1.12% on Friday.
