The USA set a condition for Intel in addition to the money provided by the CHIPS Act

The Santa Clara giant is getting $7.86 billion in subsidies for factory construction, but the United States is asking quite a lot in return.

At the end of the summer, we wrote about the fact that US support to Intel might slow down, which technically did happen, but in the end, the United States provided $7.86 billion in support for the Santa Clara giant’s factory construction plans within the framework of the CHIPS Act.

The amount in question cannot be used freely, it is determined what it can be spent on, so essentially it can be used to strengthen investments related to production technology developments and production within the USA.

A Reuters at the same time, he wrote that there is a stronger condition for the United States, specifically that Intel cannot sell the majority ownership of Intel Foundry. So, Intel must definitely own at least 50.1% in the contract manufacturing company, if it becomes a private legal entity, and if it becomes a public limited company, then Intel can only take 35%. At first glance, this is a logical demand on the part of the USA, but it makes the future of the processor manufacturer very difficult, because there is no way they can get rid of their massive loss-making division. So if the Santa Clara giant needs capital, they will have to sell the divisions responsible for chip development.

For the United States, the agreement guarantees some security, since a leading chip manufacturer will be kept within the country, but it is also clear that the US is really only interested in manufacturing from Intel, which is considered a critical factor from the point of view of national security.