Intel has revealed that a $7.86 billion US government subsidy deal restricts its ability to sell stakes in its chipmaking unit, Intel Foundry, if it becomes an independent entity. The subsidy is part of a larger $39 billion package aimed at revitalizing the US chip manufacturing sector.
The company had previously stated plans to spin off its chip manufacturing operations into a subsidiary and seek outside investors. However, the subsidy deal requires Intel to own at least 50.1% of Intel Foundry if it separates into a new legal entity. If this happens and Intel is not the largest shareholder, the company can only sell up to 35% of the unit to any single shareholder.
Intel’s $90 billion worth of projects in Arizona, New Mexico, Ohio, and Oregon rely on its ability to maintain control over its chip manufacturing operations. Any changes in control would require Intel to seek permission from the US Department of Commerce, according to the filing.
Source: https://finance.yahoo.com/news/intels-7-86-billion-subsidy-010229971.html