Intel receives $5.7B of US stake from CHIPS grants: CFO

[Intel Reports Quarterly Earnings]
Justin Sullivan/Getty Images News

Intel (NASDAQ:INTC [https://seekingalpha.com/symbol/INTC]) Chief Financial Officer David Zinsner said his company has received $5.7B of the U.S. government's 10% investment [https://seekingalpha.com/news/4488523-intel-confirms-massive-11_1b-investment-by-us-government].

"This was a quick way to getting, initially, $5.7B in the door," Zinsner said on Thursday during a fireside chat at Deutsche Bank's 2025 Technology Conference in Dana Point, Calif. "By the way, we have received it. We got it last night. So that's on the balance sheet. So that was one thing that eliminated the need to access the capital markets in any other way in the near term."

The $5.7B came from part of Intel's share of the U.S. CHIPS and Science Act funding. Under the agreement, the U.S. is buying 433.3M shares at $20.47 each. Intel had already received $2.2B in grants from CHIPS at an earlier date. Another $3.2B will stem from the Secure Enclave program through the U.S. Department of Defense elevating the total investment to $11.1B.

"I think having the U.S. government invested in us and our success is absolutely helpful," Zinsner said. "I think it is helpful with customers ... Obviously, when you take the grant money and switch it over into equity, it does have a dilutive impact ... but when you run the math, it doesn't take a lot of volume of foundry wafers for us to make this accretive for us."

Interestingly, in the same week the Trump Administration confirmed it was taking a major stake in Intel, Japan's SoftBank (OTCPK:SFTBY [https://seekingalpha.com/symbol/SFTBY])(OTCPK:SFTBF [https://seekingalpha.com/symbol/SFTBF]) also announced it would make a $2B investment [https://seekingalpha.com/pr/20204353-softbank-group-and-intel-corporation-sign-2b-investment-agreement#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] in Intel common stock, paying $23/share.

"It was just a coincidence that it all fell in the same week," Zinsner said.

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