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Intel gives US government a 10% stake in foundry business
Big news in tech: Intel just gave the US government a 10% stake in its foundry business—the part that builds custom chips for other companies.
This move, revealed by Intel's CFO David Zinsner, also means Intel would face significant penalties if it sells or spins off this division within the next few years.
Intel's foundry posted a $3.1 billion loss last quarter
The deal is all about making more semiconductors in the US and relying less on overseas giants like Taiwan's TSMC.
The government even has an option to buy another 5% if certain conditions are met, though Intel doesn't expect that to happen.
Even with $5.7 billion from federal grants, Intel's foundry posted a $3.1 billion loss last quarter—so it's still got some big hurdles ahead.