Washington, Aug 26 (V7N) – Intel Corp. has cautioned that the U.S. government’s newly acquired 9.9% equity stake in the company may pose risks to its business, particularly affecting international sales and future access to government funding. The disclosure came in a securities filing on Monday, following a White House decision to convert $11 billion in previous grants into ownership in the chipmaker.

The move, part of President Donald Trump's aggressive industrial policy, marks one of the most significant U.S. government interventions in a private tech firm to date.

Despite Intel CEO Lip-Bu Tan stating in a video released by the Commerce Department that the company does not need the grant—“I don't need the grant, but I really look forward to having the U.S. government be my shareholder”—the filing signals unease within the company about the broader implications of the deal.

Intel raised concerns that the deal could trigger similar moves from other government bodies, reduce the company’s eligibility for future subsidies, and subject it to foreign subsidy laws or regulatory scrutiny abroad. The company highlighted that 76% of its 2024 revenue came from international markets, including 29% from China alone.

The government stake includes $5.7 billion in unpaid grants under the 2022 CHIPS and Science Act and $3.2 billion from the Secure Enclave program awarded during President Biden's administration.

Additionally, Intel acknowledged the U.S. equity purchase would dilute existing shareholders. The shares were acquired at a $4 discount to Friday’s closing price of $24.80.

Intel stock rose 2% in early Monday trading, reaching $25.25.

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