Inbizzy, WASHINGTON, D.C. – Intel Corp. has amended its funding agreement with the U.S. Department of Commerce, allowing the company to access $5.7 billion in funding earlier than initially planned. The funds come from the CHIPS and Science Act, a U.S. government initiative aimed at strengthening the domestic semiconductor supply chain.
Intel will have greater flexibility in utilizing the funds while remaining subject to certain restrictions. The company is prohibited from using the money for dividends, share buybacks, mergers, or business expansions in specific restricted countries.
As part of the agreement, Intel has issued 274.6 million shares to the U.S. government, with an option for the government to purchase an additional 240.5 million shares in the future. Another 158.7 million shares have been placed in escrow, to be released if further funding is provided for the Secure Enclave program, which supports advanced semiconductor manufacturing in the U.S.
Intel disclosed that it has already allocated at least $7.87 billion to eligible projects under the CHIPS Act. With this additional funding, total U.S. government investment in Intel has now reached $11.1 billion, including previous grants.
The move aligns with Washington’s efforts to boost domestic semiconductor production and reduce reliance on overseas manufacturing amid intensifying global tech competition.
