Intel warns shareholders that the US government’s 10% stake could hurt company’s international sales

https://www.tomshardware.com/pc-components/cpus/intel-warns-shareholders-that-the-us-governments-10-percent-stake-could-hurt-companys-international-sales

One of Intel's biggest concerns is its dependence on foreign markets: In fiscal 2024, the company earned 76% of its $53.1 billion revenue outside the United States, a slight decline from the previous year, but still the lion's share. Sales to entities in China contributed 29% of Intel's total revenue, followed by the U.S. with 24.5%, Singapore with 19.2%, and Taiwan with 14.7%. Now that the U.S. government is Intel's largest shareholder, the chipmaker is directly linked to Trump's unpredictable trade and tariff policies, which could unsettle overseas customers and governments. 

"Having the U.S. Government as a significant stockholder of the Company could subject the Company to additional regulations, obligations or restrictions, such as foreign subsidy laws or otherwise, in other countries," a statement by Intel reads. 

In addition, the filing highlights the possibility of negative reactions from investors, suppliers, employees, and competitors. Intel went as far as to mention that lawsuits or political scrutiny could arise and warned that a change in the U.S. political leadership could alter or even undo parts of the agreement, which would cause further consequences.

"Among other things, there could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors," the statement says. 

Intel acknowledged it had not finished evaluating the full financial, tax, and accounting effects of the deal, so further issues may arise. 

The agreement between Intel and the U.S. government, signed on August 22, 2025, includes two funding steps. The first is roughly $5.7 billion, which represents accelerated payments from Intel's earlier arrangement with the Commerce Department under the CHIPS Act. The second is about $3.2 billion, which is linked to the CHIPS Act 'Secure Enclave' initiative for critical chips for aerospace and defense, and will be provided as conditions are met. Together, this funding package gives Intel immediate cash ($5.7 billion) and aligns future payments with government programs.

In return, Intel will issue up to 433 million shares of stock to the U.S. government. Roughly 275 million shares will be given out once the first batch of money arrives, while around 159 million shares will sit in escrow and be released only as the Secure Enclave funds are transferred. However, if Intel does not receive all of the expected Secure Enclave money, half of the corresponding shares will still go to the government (no matter how many contracts are signed and for how much), while the other half will be cancelled.