President Donald Trump’s move to purchase a significant stake in chipmaker Intel may cause the company a lot of trouble. The Trump administration’s investment in Intel was structured to deter the chipmaker from selling its manufacturing unit, its chief financial officer said on Thursday, locking it into a lossmaking business it has faced pressure to offload.
“I don’t think there’s a high likelihood that we would take our stake below the 50 percent, so ultimately I would expect [the warrant] to expire,” CFO David Zinsner told a Deutsche Bank conference on Thursday.
“I think from the government’s perspective, they were aligned with that: they didn’t want to see us take the business and spin it off or sell it to somebody.”
White House Press Secretary Karoline Leavitt told reporters on Thursday the deal was being finalized. “The Intel deal is still being ironed out by the Department of Commerce. The T’s are still being crossed, the I’s are still being dotted.”
READ: Intel linked to Chinese partners sanctioned over human rights violations (
Intel and the U.S. government are negotiating a landmark deal as part of the CHIPS and Science Act funding, which could see the government acquire a 10% ownership stake in Intel through the conversion of federal grants into equity. However, this stake has not yet been finalized or officially acquired.
As part of the agreement, Intel has already received $5.7 billion in cash, while an additional $3.2 billion in funding, including a $3 billion Secure Enclave award from the Department of Defense (DoD) is still pending. These funds support Intel’s plans to accelerate the development and manufacturing of advanced semiconductor technologies such as the Intel 18A node.
The deal aims to strengthen U.S. semiconductor manufacturing by incentivizing investments across several states, including Arizona, Ohio, New Mexico, and Oregon. Intel expects to create tens of thousands of new jobs and expand its domestic production capabilities to reduce reliance on foreign suppliers amid geopolitical tensions.
Despite the significant federal support, Intel has expressed concerns over potential regulatory challenges and business risks tied to government ownership, including impacts on international sales and compliance obligations.
READ: Trump pushes government investments especially defense; Intel flags risks (
This deal represents a strategic shift in U.S. industrial policy, emphasizing collaboration between government and industry to secure technological leadership and national security. The exact terms, especially the government’s equity stake, remain under negotiation and have yet to be finalized.
Mr Zinsner’s comments highlight how the deal with the Trump administration ties the company’s hands.
This ongoing deal between Intel and the U.S. government marks a significant shift in the relationship between private industry and federal oversight, especially in a critical sector like semiconductor manufacturing. While the proposed 10% government stake and substantial funding aim to bolster domestic production and secure technological leadership, the arrangement also imposes notable restrictions on Intel’s strategic flexibility.
CFO David Zinsner’s remarks reveal concerns that the government’s involvement could limit Intel’s ability to make independent business decisions, such as selling or spinning off less profitable units. These constraints could pose challenges as Intel navigates competitive pressures and global market dynamics.