Government funding will help Intel offset its current losses while allowing the U.S. to bolster its technological independence by eliminating the risk of third-party interference in chip production.
Under this agreement, Intel is prohibited from selling or shutting down its facilities. The company must continue manufacturing processors outlined in the strategic CHIPS and Science Act initiative.
If Intel seeks investors to open new facilities, it must retain at least 50.1% ownership and maintain decisive voting rights in any legal entity formed. Additionally, no private investor can own more than 35% of joint venture shares.
In September, Qualcomm had shown interest in acquiring part of Intel’s business but lost interest due to Intel’s precarious financial situation. The direct government funding further cemented the end of this potential deal.
