Intel receives $5.7 billion from settlement with US government

Intel received $5.7 billion in cash on the evening of August 28, part of a deal negotiated by US President Donald Trump, in exchange for a 10% stake in the struggling chipmaker.

The information was announced by Chief Financial Officer David Zinsner at an investor conference on August 29.

According to Mr. Zinsner, the US government 's investment is to encourage Intel to continue to maintain control over the foundry chip manufacturing segment.

In addition, the deal includes the right to buy an additional 5% stake in the event Intel no longer holds more than 51% ownership of the chip manufacturing business under the contract.

On the same day, White House Press Secretary Karoline Leavitt said the agreement between Intel and the US government "is still being finalized by the Department of Commerce, with many details still to be agreed upon."

Intel declined to comment on the report. Ms. Leavitt stressed that the proposal came from President Trump and that the Commerce Secretary is working to make it happen.

Earlier this August, Intel also raised $2 billion from SoftBank through a share sale. The group also planned to cut its workforce to 75,000 people, as part of CEO Lip-Bu Tan's restructuring efforts.

Mr. Tan’s strategy includes finding big customers for chip manufacturing, while eliminating areas he considers non-essential.

Intel is now separating its contract chip manufacturing operations from its design business.

Manufacturers like TSMC often manufacture chips for chip design companies like Nvidia or AMD, which don't own factories.

Intel has previously said it may welcome outside investors into its foundry business and has set up a separate board of directors to oversee the move.

Mr. Zinsner said that if there are more outside investors, Intel will prioritize strategic partners instead of financial investors.

In July 2025, Intel acknowledged that the future of its foundry business hinged on whether it could find big customers for its next generation of chip manufacturing technology, called 14A. If it failed, the company could exit the field. However, Mr. Zinsner downplayed that concern on August 29.

“The lawyers always want us to be more transparent about the risks, but it's not at a point where it's alarming,” he said.

He affirmed that Intel is focused on signing contracts with large customers in the coming year, while maintaining “financial discipline” in the process of developing new generation manufacturing technology.

According to him, the investment for 14A if only serving Intel's internal needs is too large, not ensuring reasonable benefits for shareholders./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/intel-nhan-57-ty-usd-tu-thoa-thuan-voi-chinh-phu-my-post1058692.vnp