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The Trump administration seems intent on controlling Intel\u2019s ability to make key business decisions around its floundering foundry business unit.<\/p>\n
According to reporting from the Financial Times<\/a>, at a Deutsche Bank conference on Thursday, Intel\u2019s CFO David Zinsner shared new details about the company\u2019s recent deal with the Trump administration, which gave the U.S. government a 10% equity stake<\/a>.<\/p>\n The deal was structured in a way to penalize Intel if it spins out its foundry business unit, which makes custom chips for outside customers, within the next few years.<\/p>\n Last week\u2019s deal included a five-year warrant that would allow the U.S. government to take an additional 5% of Intel, at $20 a share, if the company held less than 51% equity in its foundry business. Zinsner said he expects that warrant to expire.<\/p>\n \u201cI think from the government\u2019s perspective, they were aligned with that; they didn\u2019t want to see us take the business and spin it off or sell it to somebody,\u201d he said.<\/p>\n Zinsner added that the company received $5.7 billion in cash<\/a> on Wednesday, as a result of last week\u2019s deal, according to Reuters. (That cash comes from the remaining grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act.)<\/p>\n White House press secretary Karoline Leavitt told reporters today that the deal was still being ironed out.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> Intel declined to comment on the deal beyond Zinsner\u2019s remarks. <\/p>\n This deal structure is clearly a testament to the Trump administration\u2019s desire to bring more chip manufacturing to the United States as many players in the industry turn to Taiwan Semiconductor Manufacturing Company\u2019s offshore manufacturing instead.<\/p>\n But this warrant also forces Intel to keep a business unit that is losing money. Intel Foundry reported an operating income loss of $3.1 billion<\/a> during the second quarter and has been a source of strife for the semiconductor business.<\/p>\n There have been calls from analysts, board members, and investors alike to spin out the struggling foundry unit, which looked like it might actually happen last fall<\/a>, before Intel Foundry\u2019s architect, former CEO Pat Gelsinger, retired suddenly in December<\/a>.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 27-29, 2025<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n