Intel has received 5.7 billion dollars from the US government
The US government has kept its word and transferred 5.7 billion dollars to Intel. More details about the deal are now known.
(Image: Tada Images/Shutterstock.com)
Intel's Chief Financial Officer David Zinsner has confirmed the receipt of 5.7 billion US dollars from the US government. In addition, it is now clear where the shares for the government's 9.9 percent share come from: Intel is issuing around 433 million new shares for the US government instead of selling existing shares of its own.
Zinsner said this at the Deutsche Bank 2025 Technology Conference (recording at Intel, transcript at Seekingalpha). He admitted that this process would dilute the share price. Existing shareholders must therefore be prepared for a declining value. Intel is currently focusing on cash to stabilize the group. If things pick up in the long term, shareholders will benefit, argues the CFO.
Payment without conditions
Zinsner presents the new agreement with the US government as advantageous, although the previous Biden administration had promised the same amount as a subsidy. Accordingly, it would have been doubtful whether Intel would even have reached the negotiated milestones for the payment of the remaining funds.
As usual, the parties involved are not revealing what the milestones looked like. The construction of agreed production capacity and the timely availability of new production processes are conceivable. However, Intel has postponed or completely suspended the construction of new semiconductor plants due to a lack of funds.
In addition, the US government would have had the right to reclaim 2.2 billion dollars in subsidies that had already been paid out. The government has now waived this clause.
Videos by heise
13 billion dollar financial injection
Meanwhile, the balance sheet for the current quarter should look good for Intel: In addition to the 5.7 billion dollars from the US government, the Group will receive two billion from investor Softbank. One billion will come from the partial sale of the automotive division Mobileye, and a further 4.5 billion from the upcoming partial sale of the FPGA designer Altera (Zinsner spoke of 3.5 billion, but this was probably a slip of the tongue). This amounts to a good 13 billion dollars.
Meanwhile, Intel wants to find further investors for its chip manufacturing division Intel Foundry. It is currently losing billions every quarter, since Intel's CPU division has been buying its chips from its sister division at standard industry prices. Intel is hoping for the 14A production generation for additional customers.
Meanwhile, Intel does not want to sell Foundry completely. The company must hold at least 51 percent of the shares for the next five years, otherwise the US government has the right to purchase a further five percent of the remaining group at a favorable price.
Empfohlener redaktioneller Inhalt
Mit Ihrer Zustimmung wird hier ein externer Preisvergleich (heise Preisvergleich) geladen.
Ich bin damit einverstanden, dass mir externe Inhalte angezeigt werden. Damit können personenbezogene Daten an Drittplattformen (heise Preisvergleich) übermittelt werden. Mehr dazu in unserer Datenschutzerklärung.
(mma)
