Chipmaker says having US government as significant stockholder of firm could subject Intel to additional regulations, obligations or restrictions in other countries
US chip firm Intel warned Monday that the Trump administration's acquisition of a 10% stake in the firm could negatively impact the company's operations outside the country and spark "adverse reactions."
"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," Intel wrote in a Securities and Exchange Commission (SEC) filing.
It noted that it is difficult to foresee all possible outcomes given the scarcity of examples of the US government becoming a significant shareholder in a company.
"There could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors,” the company said. “There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company.”
Additionally, Intel said the possibility of a shifting political climate in Washington might make the agreement questionable or null and void and put present and future stockholders at risk.
The White House said Friday that it was acquiring a 10% stake in Intel.
A portion of the approximately $8.9 billion investment will come from grant financing related to the CHIPS Act, while the remainder will come from different government expenditures for initiatives related to the production of secure chips.
Intel is expected to get an additional $5.7 billion from the program on top of the $2.2 billion it has already received. According to a statement, a different government program gave out $3.2 billion, for a total of $11.1 billion.
Trump called the agreement “a great Deal for America” and said the building of advanced chips “is fundamental to the future of our Nation.”
Trump also said Monday that he will make deals like the Intel deal for the US "all day long."
"I will also help those companies that make such lucrative deals with the United States," he noted.
