The USA has a lot of money available for Intel, but this comes with a few conditions. For example, the chip giant is not allowed to sell its foundry business and American investment in research and development is mandatory.

The 7.9 billion euros that the USA is paying to Intel comes with a “but”. Intel receives the money under the Chips Act. The USA wants to support chip production on its own soil. However, according to Reuters, Intel must commit not to sell its factories in order to use the funds. This isn’t such an obvious request, as Intel already wants to make Intel Foundry an independent subsidiary.

Majority

The subsidies make a sale impossible, but not a spin-off, provided Intel retains 50.1 percent of the shares in the new company. In addition, in such a case, Intel must continue to purchase wafers from the fab department on a large scale. If Intel Foundry goes public, no third party will be allowed to acquire more than 35 percent of the shares unless Intel remains the largest shareholder.

Whatever Intel does with the factories, the US wants to ensure that the American company remains in control. This ensures that chip production subsidies flow to an American company in the long term.