Intel receives $5.7 billion investment from US government

Intel has confirmed it has received $5.7 billion from the US government as part of a deal under which the White House plans to acquire a 10% stake in the chipmaker. This was announced by the corporation’s CFO David Zinser at a conference for investors, CNBC reports.

According to him, Intel is considering attracting external investors to its foundry division, which is engaged in contract manufacturing of chips for third-party companies. This business is considered strategically important for Intel to regain its competitive position in the global market.

Despite the publication of a second-quarter report with better-than-expected results, the company’s shares fell by 8%. Analysts attribute this to concerns about the prospects of the foundry business, which is the key area of ​​focus.

White House press secretary Caroline Levitt noted that the deal is still being finalized and remains at the negotiation stage. At the same time, in a corporate report, Intel warns: cooperation with the US authorities may cause a negative reaction from investors, employees, customers, partners and foreign governments. The company also does not exclude the risk of lawsuits and increased political pressure.

Thus, the deal, which should strengthen Intel’s financial position, is accompanied by uncertainty and potential reputational costs. Earlier it became known that SoftBank will invest 2 billion dollars in Intel against the background of the company’s restructuring.